HomeMy WebLinkAboutOrd #204 - 3rd Ser/Adding Rental Licensing and Prohibition of Short Term Rentals ORDINANCE NO. 2°4 THIRD SERIES
CITY OF ORONO
HENNEPIN COUNTY,MINNESOTA
AN ORDINANCE AMENDING THE ORONO MUNICIPAL CODE
BY ADDING ARTICLE IV TO CHAPTER 26 REGARDING RENTAL LICENSING
AND A PROHIBITION OF SHORT TERM RENTALS
THE CITY COUNCIL OF ORONO ORDAINS:
SECTION 1. Orono City Code Chapter 26 Businesses is amended by adding a new
Article IV as follows:
Sec. 26-80—Purpose
The Orono City Council finds that to promote the health, safety, and welfare of the
residents of the city, assure preservation of the existing housing supply,maintain property
values, eliminate substandard and deteriorating rental housing, and maintain a living
environment that contributes to healthful individual and family living, it is in the best interest
of the residents of Orono to require a license for all residential rental property.
Section 26-81 —Definitions
The following words and terms when used in this Article shall have the following
meanings unless the context clearly indicates otherwise.
Applicant means a"person"as defined herein, who completes or signs an application
for a license to rent real estate individually or on behalf of a business.
Dwelling means a single-family residence or habitation providing living facilities for
one(1)or more persons.
Lease means a written agreement creating a tenancy in real property.
License holder means the owner of property licensed to rent to residents.
Manager means an individual who is hired or is applying to be hired by a licensee
and who has or would have the means, within the scope of the individual's duties,to enter
tenants' dwelling units.
Occupant means any person living, sleeping, cooking, and eating in a rental dwelling
unit.
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Owner means any person who, alone,jointly, or severally with others, shall be in
actual possession of, or have charge, care or control of, any rental dwelling unit within the
city as titleholder, employee or agent of titleholder, operator, or trustee or guardian of the
estate or person of the titleholder. Any such person representing the actual titleholder shall be
bound to comply with the provisions of this Article to the same extent as the titleholder.
Person means One(1) or more natural persons; a partnership, including a limited
partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a trust; a
political subdivision of the State; or any other business organization.
Qualifying relative means a parent, stepparent, child, stepchild, grandparent,
grandchild,brother, sister,uncle, aunt, nephew or niece. This relationship may be either by
blood or marriage.
Rent means leasing, subleasing, letting, or hiring for occupancy.
Rental means a residential living unit that is occupied by people other than the owner
and/or qualifying relatives.
Rental charge means any compensation, either monetary or"in lieu of'payments,
such as,but not limited to,utilities, upkeep, or repair.
Rental dwelling unit means a dwelling or portion thereof for rent.
Residential building means a structure designed and used for residential rather than
commercial or industrial purposes.
Tenant means any adult person granted temporary use of a rental dwelling unit in
exchange for rent payable to the owner of the rental unit.
Unit means a dwelling.
Sec. 26-82—License required.
No person shall operate a rental dwelling unit anywhere within the city without first having
obtained a license and paying a license fee.
(a) Application. An application for a license to rent real property shall be made on a
form provided by the city. The application shall include,but is not limited to,
requiring the full name of the applicant,property owner, and property manager;
the applicant, owner, and property manager business address, e-mail address, and
telephone numbers including a twenty-four(24)hour contact phone number; the
name of the proposed license holder; and the address for which the license is
sought. The completed application along with the application fee shall be
submitted to the City Administrator or designee for review. If the City
Administrator or designee determines that an application is incomplete,he or she
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shall return the application to the applicant with notice of the deficiencies. Should
any application information change during the license period,the applicant shall
notify the city within seven(7)business days. Failure to do so may be considered
a license violation.
(b) Action. The City Council or its designee may either approve or deny the license,
or may delay action for up to sixty(60) days topermit the city to complete any
investigation of the application or the applicant as deemed necessary. If the City
Council or its designee approves the license, a license shall be issued to the
applicant. If the City Council or its designee denies the application, a notice of
denial shall be issued to the applicant at the business address provided on the
application along with the reasons for the denial. The notice shall also inform the
applicant of their right to appeal the decision to the City Council pursuant to the
process set forth in City Code Section 26-41. If a license is mistakenly issued or
renewed to an applicant or license holder, it shall be revoked by the City
Administrator or designee upon the discovery that the person, applicant, or license
holder was ineligible for the license under this Article.
(c) Term. All licenses are issued for a period of two (2) year. Licenses shall expire
December 31 of the second year. Refunds of license fees will not be given.
(d) Adverse License Action. Any license issued under this Article may be suspended,
revoked or not renewed as provided in City Code Section 26-86.
(e) Transfers. All licenses issued under this Article shall be valid only on the
premises for which the license was issued and only for the person to whom the
license was issued. No transfer of any license to another location or person shall
be valid without the prior approval of the City Administrator or designee.
(f) Renewals. The renewal of a license under this Article shall be handled in the same
manner as the original application. Sixty(60) days prior to the expiration of a
rental dwelling license,the city will notify the licensee of the upcoming renewal
deadline within which to file the rental dwelling license renewal application. The
rental dwelling license renewal application shall be submitted a minimum of
thirty(30)days prior to the then current license expiration. Renewal applications
received after the due date but before the license expiration date shall be subject
to late fees as determined by City Council resolution. The issuance of a license
under this Article shall be considered a privilege and not an absolute right of the
applicant and shall not entitle the holder to an automatic renewal of the license.
(g) License Standards. No license may be issued or renewed unless all of the
following conditions are met.
1. The owner shall provide the city and any tenant with a twenty-four(24)hour
emergency contact that will be available to respond to complaints regarding
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the condition, operation, or conduct of occupants of a rental unit at the rental
property within sixty(60)minutes.
2. The rental property must have a visible house number that can be easily seen
by from the street both day and night.
3. All advertising for the rental shall include the city issued license number.
4. The primary overnight and daytime occupant of a rental unit must be an adult
eighteen years of age or older. This adult must provide a telephone number to
the owner and shall be accessible to the owner by telephone at all times.
5. Minimum of two off street parking spaces shall be provided. The maximum
number of vehicles allowed at a rental property shall be limited to the number
of available off street parking spaces.
6. The owner of a rental property shall provide sufficient trash collection
containers and service to meet the demands of the occupants.
(h) Denials. The following shall be grounds for denying the issuance or renewal of a
license under this Article. The following list is not exhaustive or exclusive.
1. The applicant has more than one(1) license to lease rental property revoked
within the preceding twelve(12)months of the date of the application.
2. The applicant fails to provide any information required on the city license
application or license fee, or provides false or misleading information.
3. A development contract or land use requirement that restricts rental units.
4. The applicant fails to meet or comply with the license standards enumerated in
Section 26-82 (g).
5. The applicant fails to take any action required by City Code Section 26-87.
(i) Consideration of Suspension or Revocation. At any time during the license
period, if a rental property does not meet or exceed the criteria established for the
current license,the license may be brought forth to the City Council for
consideration of license suspension or revocation.
Sec.26-83 —Exceptions
A property owner that leases the subject property as set forth on the following list is
exempt from the rental licensing requirements of this Article but not other regulations or codes
applicable to structures or properties:
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(a) Retail/commercial/industrial rental activities.
(b) Rental property which is licensed as a nursing home or boarding care home by the
State of Minnesota Department of Health and state licensed residential facilities.
This exception shall not apply if no services are provided to the tenants, or the
services are incidental to, or independent of,the landlord/tenant relationship.
(c) Residential property that is occupied by the owner or the owner's qualifying
relative and two (2) or less tenants where the owner and the tenants share all
living space within the dwelling.
(d) Residential property that has been sold on contract for deed so long as the vendee
occupies the property and the sale document used to memorialize the sale is a
Minnesota uniform conveyancing blank or is recorded with the Hennepin County
Recorder's Office and a copy is provided to the City upon request.
(e) Dwellings owned by a member of the United States Armed Services who is on
active duty and the property is rented to another person during the time of active
duty. The owner must provide the City with a copy of the owner's current military
orders and must occupy the property when not on active duty as the owner's
primary residence.
Sec. 26-84—License Suspension, Revocation, and Nonrenewal
(a) The following actions by property owners or license holders are misdemeanors and
are subject to civil penalties,may constitute the basis for suspension,revocation, or
nonrenewal of licenses, and may result in injunctive action by the City. The property
owner shall be responsible for the conduct of its agents and employees while engaged
in normal business activities on the licensed premises. Any violation of this Article
shall be considered an act of the property owner or license holder for purposes of
imposing a civil penalty or license suspension or revocation. If a license is suspended
or revoked it is unlawful for the owner to permit new occupancy of any vacant rental
unit, or any units that become vacant during the license injunction.
(b) Basis for Sanctions. The City Administrator or designee may revoke, suspend, or
decline to renew any license issued under this Article for part or all of a rental
residential building or rental dwelling unit upon the following grounds.
1. Leasing without a license. Leasing residential units without a license or units
subject to license suspension or revocation.
2. Violations of Codes. Violation of the building, fire, or safety code.
3. Commission of a Felony. Commission of a felony related to the licensed activity
by the property owner or manager.
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4. Updated Application Information. Failure to provide updated application
information during the license period.
5. False Statements. False statements on any application or other information or
report required by this Article to be given by the applicant or licensee.
6. Fees. Failure to pay any application fee or penalty required by this Article or City
Council resolution.
7. Delinquent Taxes or Fines. Real estate or personal property taxes have become
delinquent or unpaid fines.
8. Failure to Meet License Standards. Failure to meet the license standards
enumerated in City Code Section 26-82 (g).
9. Disorderly Use. Failure to take any action required by City Code Section 26-87.
(c) Upon denial, suspension, revocation or other enforcement action on a license, the city
will notify all affected tenants of the action against the license. If the license is
revoked or suspended the licensee may not let,rent, or allow to be occupied any
vacant dwelling units, or dwelling units that become vacant during the revocation or
suspension period.
(d) The minimum penalty for three or more violations of this Article relate to the same
license within a twelve (12)month period is suspension of the rental license for
twelve(12)months.
Sec. 26-85 —Inspections
(a) The City may conduct an inspection of the rental property as deemed necessary or
prudent prior to issuance or renewal of a license and without limitation based upon
any complaints or violations that occur.
(b) Any Code violation noted by the city must be remedied in a timely fashion by the
property owner and re-inspected for compliance by the city. The applicant is
responsible for re-inspection costs.
Sec. 26-86—Short Term Rentals Prohibited
No person may rent or lease a rental dwelling unit for a term less than 30 days except that
a rental license may be issued and used for rental terms less than 30 days if all of the following
conditions are met:
(a) The rental dwelling unit is located in a home that is owner occupied.
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(b) The rental dwelling unit to be rented is no more than two (2)bedrooms.
(c) All license standards enumerated in City Code Section 26-82 (g) are adhered to.
Sec. 26-87—Disorderly Use by Tenants
The owner shall ensure that the occupants and guests of a rental unit do not create
unreasonable noise or disturbances, engage in disorderly conduct, or violate any provision of the
City of Orono Code or any State law pertaining to noise, disorderly conduct, overcrowding, the
consumption of alcohol, or the use of illegal drugs. Owners are expected to take any measures
necessary to abate disturbances including, but not limited to, directing the occupants and guests
of a rental to cease the disturbing conduct, removing the occupant and/or guest or taking any
other action necessary to immediately abate the disturbance.
Sec. 26-88 —Penalties
A violation of this Article is a misdemeanor under state law. In addition, the city may
impose a civil penalty in the amount of one thousand dollars ($1,000) for renting, leasing, or
occupying a rental residential building or rental dwelling unit or part thereof without a license.
Failure to pay civil fines or penalties may result in future license ineligibility. Nothing in this
Article may be construed to limit the city's other available legal remedies for any violation of
law. Each day that the property owner or license holder is in violation of this Article constitutes a
separate violation.
SECTION 2. EFFECTIVE DATE: This ordinance shall take effect April 1, 2018
after its passage and publication.
ADOPTED this 26th day of February, 2018 on a vote of 3 ayes and 1 nay by the
City Council of Orono, Minnesota.
A EST:
00`1(-22t
Anna Carlson, City Clerk Dennis Walsh, Mayor
Ordinance published in The Laker and The Pioneer newspapers the week ofMarch 17, 2018.
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