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HomeMy WebLinkAbout2007 02-20 HCA AGENDA BROOKLYN CENTER HOUSING COMMISSION February 20, 2007 7:00 p.m. Council/Commission Room Brooklyn Center City Hall 1. Call to Order: 7:00 p.m. 2. Roll Call 3. Approval of Agenda 4. Approval of Minutes January 16, 2007 5. Chairperson's Report 6. Council Liaison Report 7. Discussio: Housing Commission Past Consideration of Point of Sale Ordinance 8. Discussion: 2007 Commission Agenda 9. Other Business 10. Adjournment: 8:30 p.m. Memorandum To: Chairperson Judy Thorbus and Housing Commission Members j q�� From: Tom Bublitz, Community Development Specialist Date: February 13, 2007 Subject: Chronology of Past Consideration of Point of Sale Ordinance I am enclosing copies of Housing Commission and City Council minutes spanning an almost two year period wherein a Point/Time of Sale Ordinance was proposed by the Housing Commission and considered by the City Council. The ordinance was never approved. My records indicate the last consideration of the ordinance was at the January 11, 1999 City Council meeting. I have included excerpts from Council minutes and the most significant memos and reports from staff during this period. This material tracks the issue from beginning to end. Staff will be prepared to discuss this issue at the February 20 meeting. Also included is information on the State real estate disclosure law from the Minnesota Realtors. A copy of the statutory language is also included. The State law was passed in 2004 and is currently in effect statewide. /�j T� �in w�� •e .:...v �.�i ii. IMPORTANT NOTICE: NEW SELLER DISCLOSURE REQUIREMENTS 22 July 2004 The Minnesota Association of REALTORS� (MNAR) successfully pursued legislation modifying the H� Seller Disclosure law (M.S. 513.52-513.60). As of January 1, 2003 all sellers of single-family residential property (property occupied as, or intended to be� occupied as, a single-family residence, including a unit in a cominon interest community, regardless of whether the unit is in a coinmon interest com�nunity not subject to chapter S15B) were required to ��i� disclose to prospective buyers material facts pertaining to adverse physical conditions in the property of which they are aware that could significantly or adversely affect an ordinary buyer's use or enjoyment of the property or any intended use of the property of which they are aware. MNAR successfully lobbied to modify this statute, and effective AuQUSt 1. 2004 sellers of existing single-family residential property will be required to disclose ALL MATERIAL FACTS of which they are aware that could significantly or adversely affect an ordinary buyer's use or enjoyment of the property or any intended use of the property of which they are aware. The difference between the initial law and the new change includes material facts that a prospective buyer would want to know that are not directly associated with the physical condition of the property. ,(e.g., an expansion of a road that is adjacent to the property or the expansion of an airport runway that would allow air traffic to flow over the property.) 9/ Fq«� This legislative change needs vour immediate attention. If you have current listings, you may need to inform the Seller you are representing or assisting that they may need to modify their Seller's Property Disclosure Statement to meet the new statutory disclosure requirements. If you have entered into a Listing Contract or a Facilitator Services Agreement and the property has not sold as of August l, 2004, then you need to make sure that the Seller's disclosure adequately meets 6 y the new disclosure requirements. The Seller can either complete a revised Seller's Property Disclosure Statement or modify the Seller's Property Disclosure statement they have already completed. '��z In the event a buyer and sell.er have agreed in writing to waive the statutory seller disclosure requirements, �q���� no "material fact" disclosure would be required by the seller. If you have entered into a Listing Contract or a Facilitator Services Agreement and the property has been sold prior to August 1, 2004 and the closing is pending then no updated Disclosure would be necessary, unless the Seller became aware of a material fact between the time of Disclosure and closing of the 9� property. i �4 For You. For Your Business. r ��x.:.,,:� VM ''�'T��i, �N It is also very important for you to know that there still remains a difference in the material fact disclosure requirements for real estate licensees and sellers. Real estate licensees are required to make material fact disclosures fbr residential property occupied by, or intended to be occupied by, one to four families as their residence. Therefore, if you have entered into a Listing Contract or a Facilitator Services Agreement for a multi-unit residential property occupied by, or intended to be occupied by, one to four families as their residence and you are aware of material �i;; facts requiring disclosure, then you need to work in conjunction with your Seller to make the necessary disclosure to meet your statutory disclosure requirements. Questions or concerns regarding this article can be directed to Susan Dioury at sdiourv cz.mnrealtor.com y�,: or if you have specific legal questions, please have the broker of your office contact the MNAR Legal Hotline. For You. For Your Business, r"' Presort First Class u.s.postage PAID permit no. 30840 5750 Lincoln Drive Minneapolis, MN Edina, MN 55436 ����sa-��. ==513 51 �.tid '�'�-'�-U i 3 t+ O� cs 1�-C„ �-�VO� 513.51 Short title. 2 4„ Sections 513.41 to 513.51 may be cited as the "Uniform Fraudulent Transfer Act." HIST: 1987 c 19 s 10 ==513.52 �I 513.52 Definitions. Subdivision 1. Scope. For purposes of sections 513.52 to 513.60, the terms defined in this section have the meanings given them. Subd. 2. Prospective buyer. "Prospective buyer" means a person negotiating or offering to acquire for value legal or equitable title, or the right to acquire legal or equitable title, to residential real property. Subd. 3. Real estate licensee. "Real estate licensee" means a person licensed under chapter 82. Subd. 4. Residential real property or residential real estate. "Residential real property" or "residential real estate" means property occupied as, or intended to be occupied as, a single-family residence, including a unit in a common interest community as defined in section 515B.1-103, clause (10), regardless of whether the unit is in a common interest community not subject to chapter 515B. Subd. 5. Seller. "Seller" means a person who owns legal or equitable title to residential real property. HIST: 2002 c 306 s 1 ==513.53 513.53 Applicability. The seller disclosure requirements in sections 513.52 to 513.60 apply to the transfer of any interest in residential real estate, whether by sale, exchange, deed, contract for deed, lease with an option to purchase, or any other option. HIST: 2002 c 306 s 2 ==513.54 513.54 Exceptions. The seller disclosure requirements in sections 513.52 to 513.60 do not apply to any of the following: (1) real property that is not residential real property; (2) a gratuitous transfer; (3) a transfer pursuant to a court order; (4) a transfer to a government or governmental agency; (5) a transfer by foreclosure or deed in lieu of foreclosure; (6) a transfer to heirs or devisees of a decedent; (7) a transfer from a cotenant to one or more other cotenants; (8) a transfer made to a spouse, parent, grandparent, child, or grandchild of the seller; (9) a transfer between spouses resulting from a decree of marriage dissolution or from a property settlement agreement incidental to that decree; (10) a transfer of newly constructed residential property that has not been inhabited; (11) an option to purchase a unit in a common interest community, until exercised; (12) a transfer to a person who controls or is controlled by the grantor as those terms are defined with respect to a dec�arant under section 515B.1-103, clause (2); (13) a transfer to a tenant who is in possession of the residential real property; or (14) a transfer of special declarant rights under section 515B.3-104. HIST: 2002 c 306 s 3 ==513.55 513.55 General disclosure requirements. Subdivision 1. Contents. (a) Before signing an agreement to sell or transfer residential real property, the seller shall make a written disclosure to the prospective buyer. The disclosure must include all material facts pertaining to adverse physical conditions in the property of which the seller is aware that could adversely and significantiy affect: (1) an ordinary buyer's use and enjoyment of the property; or (2) any intended use of the property of which the seller is aware. (b) The disclosure must be made in good faith and based upon the best of the seller's knowledge at the time of the disclosure. Subd. 2. Disclosure to licensee. A seller may provide the written disclosure required under sections 513.52 to 513.60 to a real estate licensee representing or assisting the prospective buyer. The written disclosure provided to the real estate licensee representing or assisting the prospective buyer is considered to have been provided to the prospective buyer. If the written disclosure is provided to the real estate licensee representing or assisting the prospective buyer, the real estate licensee shall provide a copy to the prospective buyer. HIST: 2002 c 306 s 4 ==513.56 513.56 Disclosure not required. Subdivision 1. General. Section 513.55 does not create a duty to disclose the fact that residential property: (1) is or was occupied by an owner or occupant who is or was suspected to be infected with human immunodeficiency virus or diagnosed with acquired immunodeficiency syndrome; (2) was the site of a suicide, accidental death, natural death, or perceived paranormal activity; or (3) is located in a neighborhood containing any adult family home, community-based residential facility, or nursing home. Subd. 2. Offenders. Section 513.55 does not create a duty to disclose information regarding an offender who is required to register under section 243.166, or about whom notification is made under that section, if the seller, in a timely manner, provides a written notice that information about the predatory offender registry and persons registered with the registry may be obtained by contacting the local law enforcement agency where the property is located or the department of corrections. This section does not create a duty to disclose any facts described in subdivision 1 and this subdivision for property that is not residential real property. Subd. 3. Inspections. (a) Except as provided in paragraph (b), a seller is not required to disclose information relating to the physical condition of the real property if a written report that discloses the information has been prepared by a qualified third party and provided to the prospective buyer. For purposes of this paragraph, "qualified third party" means a federal, state, or local governmental agency, or any person whom the seller, or prospective buyer, reasonably believes has the expertise necessary to meet the industry standards of practice for the type of inspection or investigation that has been conducted by the third party in order to prepare the written report. (b) A seller shall disclose to the prospective buyer material facts known by the seller that contradict any information included in a written report under paragraph (a) if a copy of the report is provided to the seller. H I ST: 2002 c 306 s 5 ==513.57 513.57 Liability for error, inaccuracy, or omission. Subdivision 1. No liability. Unless the prospective buyer and seller agree to the contrary in writing, a seller is not liable for any error, inaccuracy, or omission of any information delivered under sections 513.52 to 513.60 if the error, inaccuracy, or omission was not within the personal knowledge of the seller, or was based entirely on information provided by other persons as specified in section 513.56, subdivision 3, and ordinary care was exercised in transmitting the information. It is not a violation of sections 513.52 to 513.60 if the seller fails to disclose information that could be obtained only through inspection or observation of inaccessible portions of the real estate or could be discovered only by a person with expertise in a science or trade beyond the knowledge of the seller. Subd. 2. Liability. A seller who fails to make a disclosure as required by sections 513.52 to 513.60 and was aware of the condition of the real property is liable to the prospective buyer. A person injured by a violation of this section may bring a civil action and recover damages and receive other equitable relief as determined by the court. An action under this subdivision must be commenced within two years after the date on which the prospective buyer closed the purchase or transfer of the real property. Subd. 3. Other actions. Nothing in sections 513.52 to 513.60 precludes liability for an action based on fraud, negligent misrepresentation, or other actions allowed by law. HIST: 2002 c 306 s 6 ==513.58 513.58 Amendment to disclosure. Subdivision 1. Notice. A seller must notify the prospective buyer in writing as soon as reasonably possible, but in any event before closing, if the seller learns that the selfer's disclosure required by section 513.55 was inaccurate. Subd. 2. Failure to notify; liability. A seller who fails to notify the prospective buyer of any amendments to the initial disclosure required under subdivision 1 is liable to the prospective buyer as provided in section 513.57. H I ST: 2002 c 306 s 7 ==513.59 513.59 Transfer not invalidated. I A transfer subject to sections 513.52 to 513.60 is not invalidated solely because of the failure of any person to comply with a provision of those sections. This section does not prevent a court from ordering a rescission of the transfer. I H I ST: 2002 c 306 s 8 I ==513.60 513.60 Waiver. The written disclosure required under sections 513.52 to 513.60 may be waived if the seller and the prospective buyer agree in writing. Waiver of the disclosure required under sections 513.52 to 513.60 does not waive, limit, or abridge any obligation for seller disclosure created by any other law. HIST: 2002 c 306 s 9 MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL AND HOUSING COMNIISSION OF THE CITY OF BROOKLYN CENTER I i IN THE COUNTY OF HENNEPIN AND THE STATE OF N�NNESOTA JOINT SESSION FEBRUARY 18, 1997 CITY HALL CALL TO ORDER The City Council and Housing Commission met in a joint meeting called to order by Housing Commission Chairperson Robert Torres at 7 p.m. ROLL CALL Mayor Myrna Kragness, Councilmembers Kathleen Carmody and Kay Lasman, Housing Commission Chairperson Robert Torres, Vice-Chairperson Ernie Erickson, Commissioners Lloyd Deuel, Henry Yang, Jonathan Carter, and Mark Yelich. Also in attendance were City Manager Michael McCauley, Community Development Director Brad Hof&nan, and Community Development Specialist Tom Bublitz. Additionally, Mr. Bill Gerst, representing the Minneapolis Area Association of Realtors, was in attendance at the meeting. Councilmembers Debra Hilstrom and RobertPeppe and Housing Commissioner Todd Cannon were absent and excused from the meeting. Also absent was Housing Commissioner Micha.el desPazois. APPROVAL OF AC'rENDA There was a motion by Commissioner Deuel and seconded by Commissioner Yelich to approve the agenda as submitted. The motion passed. A�PROV AL OF M1NLITES -.TANLJARY 21. 1997 There was a motion by Commissioner Deuel and seconded by Commissioner Carter to approve the January 21, 1997, Housing Commission minutes as submitted. The motion passed. 2/18/97 -1- J �ISCUSSION OF DRAFT TIME OF SALE ORDINANCE AND HOUSING COMNIISSION RF,VIEW OF ORDINANCE FROM JANiJARY 21, 1997. HOIJSINC'1 COMMTSSION MEETINC'r At the request of Chairperson Torres, Commissioner Erickson reviewed the Housing Commission's past considerations of the Time of Sale ordinance. He explained approximately five years ago, the issue came before the Housing Commission and was researched quite thoroughly and debated by the commission. Commissioner Erickson continued to explain that after substantial research and debate, the Housing Commission voted against pursuing a Time of Sale ordinance. Approximately two years after the commission's first rejection of a Time of Sale ordinance, the membership of the commission turned over and new commissioners requested the issue be brought before the Housing Commission again. He explained the commission again reviewed various types of ordinances, including Truth in Housing and Tirne of Sa1e ordinances and the commission again voted on pursuing an ordinance, with the vote resulting in a tie with half the commissioners voting for a Truth in Housing-type ordinance and the other half voting for a Time of Sale-type ordinance. At the joint Housing Commission and City Council meeting of February 1996, the Housing Commission and City Council again discussed the Time of Sale ordinance, and it was agreed that the Housing Commission would draft a Tiine of Sale ordinance for City Council consideration. After the February meeting, the Housing Commission researched various Time of Sa1e ordinances and heard from a private housing inspector who explained in detail the ordinances currently used in the cities of Bloomington and South St. Paul. Commissioner Erickson pointed out that both cities' ordinances were Time of Sale-type ordinances with a requirement that specific items defined as hazardous be corrected prior to the conveyance of the property. Commissioner Erickson also pointed out that the commission believed it was more expedient to use private inspectors in implementing the Time of Sale ordinance as opposed to using City staff inspectors. The Community Development Specialist briefly reviewed the draft Time of Sale ordinance developed by the Housing Cornrnission. He explained the draft ordinance has not been revised since the Housing Commission's initial review in January, but that several issues were raised at that time and he would try to address the questions from the Housing Commission's January meeting as the meeting progressed. Briefly, he reviewed the highlights of the ordinance, pointing out that the ordinance is based on the City of South St. Paul's ordinance, which in turn was based on the City of Bloomington's ordinance. Beginning with the definition section, the Community Development Specialist pointed out that a number of the definitions would have to be upda.ted and clarified, such as the definition for mobile home, which would be replaced by the Staxe Building Code definition of manufactured home, He noted that there aze numerous minor updates needed to bring the ordina.nce language more in line with current practices with regazd to the building code. Essentially, he pointed out, the ordinance requires an inspection and evalua.tion report of a home prior to conveyance of the property. The evaluation report is to be provided to the buyer prior to the execution of a purchase agreement on the property. He poi.nted out the ordinance proposes that evaluations will be done by evaluators licensed by the City and that evaluators must pass a certification of competency test conducted in 2/ 18/97 -2- the City of Minneapolis, St. Paul, or Bloomington. He pointed out that the duties of the evaluators aze to maintain a current license, conduct the evaluation within the program's guidelines, and meet required continuing education requirements established by the City. Additionally, the evalua.tor must complete the evaluation report as per the requirements of the ordinance and submit the report to the seller of the property with a duplicate filed with the City. The Community Development Specialist pointed out that the core of the ordinance is the requirement for correction of items defined as"immediate hazards". He briefly reviewed these items and noted that the items listed in the draft ordinance aze the identical hazards defined by the ordinances used in the cities of Bloomington and South St. Paul. He pointed out that owners correcting the required hazardous items must obtain all necessary pemuts from the City and that these permitted items would be inspected by a City inspector under the normal building permit procedure. He noted that in discussing the ordinance with the City inspections staff, they believe that most of the items included in the list of hazardous items would require a permit to complete. In conclusion of his review of the ordinance, the Community Development Specialist pointed out that failure to comply with the ordinance would be a misdemeanor, and there would be an appeal process set up in the ordinance for any person feeling that a decision or procedure in the ordinance was unfair. Commissioner Erickson pointed out it was suggested by the Housing Commission that the City ha.ve some type of public relations campaign to provide information on the Time of Sale ordinance when it is enacted. He noted that a member of the real estate community has been attending Housing Commission meetings and monitoring the Housing Commission's work on the Time of Sale ordinance over the past several months. He also noted that the commission had discussed the fact that Brooklyn Center is a predominantly starter home community and that first-time buyers are typically the buyers of many of the homes in the city. Mayor Kragness inquired as to the cost to the homeowner and whether the cost of an inspection is based on an hourly or fixed ra.te. Commissioner Erickson responded, noting it was his recollection that the cost of an inspection under a program such as the one proposed by the Housing Commission would be between $120-150 per inspection. Councilmember Cannody inquired as to whethei or not the Housing Commission discussed whether the intent of the ordinance fees would be to cover all the costs of the program. The Community Development Specialist noted he had spoken with a staff person at the City of South St. Paul a.nd their fees include a$10 fili.ng fee and $SO license fee for evaluators. These fees, he pointed out, were not intended to cover the staff costs associated with the program. He did point out the private inspection fee paid by the homeowner directly to the private inspector would address the major cost of the program, which is the inspection and inspection report. At the request of Chairperson Torres, the Community Development Specialist reviewed information he had researched as follow-up from the Housing Commission's review of the Time of Sale 2/18/97 -3- ordinance at their January 21, 1997, meeting. The following is a summary of the Community Development Specialist's report on follow-up from issues and questions raised by the Housing Commission at their January 21, 1997, meeting. The State Building Code does not require CO monitors in homes, and, as a result, CO monitors could not be required as part of the Tune of Sale ordinance. In response to a Housing Commission question regazding fees, the $10 filing fee and $50 license fee for evaluators used in South St. Paul are not intended to cover City expenses for the program. In response to the commission's inquiry regarding the purchase of homes without realtors involved, including faznily transfers, etc., the City of South St. Paul has noted their experience is that a sale to family members with an unrecorded contract for deed does not provide any mecha.nism to a11ow the City to know about the sale. South St. Paul indicated that, to their knowledge, this is not a widespread practice. With regard to monitori.ng the behavior of evaluators, the City of South St. Paul has indicated that in their program an owner may contact the City if they feel they were treated unfairly by an evaluator. To date, the City has addressed this problem with a letter sent to the evaluator regarding the homeowner's complaint. The staff person administering the South St. Paul program has indicated there has been no real problem with evaluator behavior in their program to date. With regard to foreclosure or "HUD" homes, the City of South St. Paul indicated that the listing agent on these properties is supposed to have a copy of the inspection report for potential 'I buyers. She explained HUD will sometimes call regarding the program and sometimes potential buyers will call the City with regard to the required report on the home they may be interested in. To date, she noted there has been no real problem with the sale of HUD homes in their city. In response to the Housing Commission's question regarding completion of correction of hazardous items in a hazdship situation (page 6, paragraph d, item 2), the City of South St. Pau1 explained they consider six months to be a reasonable time to complete repairs in a hardship situation. With regard to the commission's inquiry as to whether or not a window air conditioning unit would be classified as a permanent appliance, as per the ordinance, the Sta.te Bi.ulding Code does not define window air conditioning units or washers and dryers as permanent appliances. In response to the Commissioner's request to elaborate on the definition of hazdship in the ordinance, the City of South St. Paul describes hazdship as a situation where the current owner cannot or does not want to make the repairs, in which case the seller may allow the buyer to 2/18/97 -4- make the repairs. In South St. Paul, the buyer must submit a letter to the City specifying how long it will take to complete the repairs and the six-month period is used in this instance. Upon conclusion of the Community Development Specialist's report on follow-up from the January 21 Housing Commission meeting, the Housing Commission continued its discussion of the Time of Sale ordinance. In response to a question from the Housing Commission regazding the term "mandamus", the City Manager replied that mandamus refers to the process of seeking a court order to require someone to do a specific thing. As an example, he pointed out that in elections, certificate of elections are issued and if the issuing authority does not agree to grant a certificate of election, an individual can seek a"writ of mandamus" to obtain the certificate. Commissioner Yelich noted that at the last Housing Commission meeting, the commission heard about buyer inspection programs for homes, and he indicated he did not want the Council to assume the inspection in the Tune of Sale ordinance is as thorough as a buyer inspection program, which tends to be much more detailed than a Time of Sale inspection. In addition to inspections for the benefit of buyers, the Community Development Specialist noted Realtors have a continuing amount of tools to obtain disclosure on properties, including the use of mediation for defects in a newly-purchased home within 18 months after the purchase. He asked Mr. Bill Gerst, representing the Minneapolis Area Association of Realtors, to comment on the available tools for Realtors with regard to disclosure. Mr. Gerst replied that there are more and more disclosures, including a seller's statement of condition of the property which is widely used, and, while not mandated by law, the seller's sta.tement is used on many real estate transactions. He pointed out that the Time of Sale ordinance used in communities is another layer of disclosure. Additionally, he pointed out there are also lender inspections of properties and also buyer inspections of properties. He pointed out the City of Minneapolis is currently going through a review of their entire approach to housing inspection and trying to determine whether or not the Truth in Housing ordinance employed by the City of Minneapolis is actually serving a useful purpose. i Mr. Gerst inquired whether a hazardous item, if it is discovered by an inspection during the Time II of Sale process and the house does not sell, must be corrected. The City Manager replied that the ordinance, as it is drafted now, would require correction of the hazardous item whether or not the house sells. The City Manager pointed out the inspection, under the Time of Sale ordinance, is intended for a public purpose and not for the benefit of the specific parties. He explained the inspection is undertaken as a general inspection; not for the benefit of specific individuals. Councilmember Cazmody inquired as to how the ordinance would be refined before it goes to the City Council for consideration. The Community Development Specialist explai.ned that the purpose of this evening's meeting is to deternune if the City Council approves the basic philosophy of the ordinance and that the text of the ordinance would be fine-tuned prior to being presented to the City Council. 2/18/97 =5- Councilmember Lasman stated she does not oppose the Time of Sale ordinance, but inquired as to whether or not the ordinance would address the problems we are not addressing now under existing ordinances. She also inquired as to how many cities have these types of ordinances. Mayor Kragness commented the ordinance may give a sense to prospective buyers in the city that it provides a sense of reassurance of buying homes in the city. Councilmember Lasman questioned how the ordinance would improve the city's housing stock overall and help alleviate the further decline of the housing stock. In response to Councilmember Lasman's inquiry, Councilmember Carmody stated she believes the ordinance will not solve all the problems with regard to housing, but it is a minimal requirement to be met with regard to correcting at least items considered hazardous. The City Manager commented that many lenders are beginning to be more open to loaning mortgage I I� dollars on the end value of a house after it is repaired. For example, with purchase rehab loans, a $40,000 house could be purchased with an additional $10,000 for rehabilitation with a new value in excess of the initial $40,000. I The Housing Commission continued its discussion of the Time of Sale ordinance, and the issue of additional staff commitment for administering the ordinance was addressed. The City Manager stated the concerns from staff are that it will involve additional demands a.nd resources from existing staff, but it does not appear to require an additional inspector to implement a Tirne of Sale ordinance. Mayor Kragness inquired whether the ordinance would need only minor fine-tuning or major revisions. The Community Development Specialist responded that the ordinance itself should be relatively easy to fine-tune, but in addition to the ordinance evaluation guidelines, forms, etc., will be needed, and these will take a considerable amount of staff time to prepare. Councilmember Cannody requested that when the ordinance is presented to the City Council, staff should include a memorandum indicating what the ordinance is intended to accomplish. The City Manager addressed the issue of timing for implementation of a Time of Sale ordinance, noting he would target January 1, 1998, to have an ordinance finalized. Given the current staff workload, this time line would allow staff to develop the ordinance and the required administrative items to implement the ordinance. Additionally, he suggested it would not be advisable to implement a new ordinance at the busiest time of year for home sales, and typically the winter months from December through January aze the slowest time of year for home sales. There was a general consensus among Housing Commission members and City Councilmembers present that staff wouid prepare a final version of the Time of Sa1e ordinance, along with other administrative documents required such as evalua.tor guidelines, inspection forms, etc., and present this to the City Council in January of next year. 2/18/97 -6- DISCUSSION OF CITY'S HOUSING REHABILITATION D�,FERRED LOAV�R�GRA.M Councilmember Carmody stated that she wanted to address this item with the Housing Comxnission, noting that when she was on the Housing Commission she thought the deferred loan program was a good safety net for homeowners in need of repair to their homes. She noted that when she was elected to the City Council, she did not think the defened loan program was accomplishing what it was intended to do, and she does not think the loan program will prevent a home that is in decline from continuing on an eventual downward slide. Councilmember Carmody stated she does not think the housing rehabilitation deferred loan program is achieving what we want to achieve. She inquired as to how many homes the City has done in the last two to three years where you can actually see an improvement. The Community Development Specialist replied that it is difficult to give a definite number, but that at least between one-quarter to one-third of the homes done would show a substantial improvement on the exterior, which enerall indicates that new sidin and windows would be ins talled. g Y g Mayor Kragness stated the review of the deferred loan program may be a good issue to have the commisison look at. I Commissioner Erickson suggested that with the new members on the commission, it may be advisable to provide information to the commission members to bring them up-to-date on the status of the housing rehabilitation deferred loan program at the next meeting. O'I'HER BiJSINESS. Commissioner Deuel requested that information regarding the City's planned efforts for code enforcement be reviewed with the Housin Commission. g Councilmember Carmody pointed out that during this next year of code enforcement, the City will focus on housing-related issues, as opposed to the items that were targeted this past year, such as junk vehicles. The City Manager noted that this coming year's enforcement efforts will target enforcement items and try to get the entire city in compliance in a"gross fashion" in May. He explained the plan would be to zero in on the worst offenses fust, but that the effort will also address housing issues on a particular site and not}ust focusing on areas where an accumulation of junk vehicles and other items have accumulated. He pointed out fiuther that in June the plan is to start block-by-block and focus on more housing-related enforcement items. y 2/18/97 -7- ADJOURNMENT i There was a motion by Commissioner Erickson and seconded by Commissioner Deuel to adjourn the meeting. The motion passed. The joint meeting of the Brooklyn Center City Council and Brooklyn Center Housing Commission adjourned at 8:50 p.m. r City Clerk D Mayor I I 2/18/97 -8- C 0WI✓C, t l M N w'�tS PUBLIC SERVICE OF GLORIA SANTILLO The motion or the a ec f do tion of the fore oin resolution was dul s onded b member Carmod and P Y Y Y g g passed unanimously. RESOLiJT'ION EXPRESSINC'i RFCnC'rMTION AND APPRECIATION FOR THE DEDICATED PUBLI(_' S.F..R.VICE OF DOLORFS NA_REY Mayor Kragness noted the years of service by Dolores Narey in the Administration Department and her dedicated public service. RESOLtJTION NO. 98-17 Member Hilstrom introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING RECOGIVITION AND APPRECIATION FOR THE DEDICATED PUBLIC SERVICE OF DOLORES NAREY The motion for the adoption of the foregoing resotution was duly seconded by member Lasman and passed unanimously. AN ORDINANCE IMPL.EMENTING A TIME OF SALE HOUSINC'i INSPECTION. REnLTIRING INSPECTION_ DISCLOSURF. OF CONSUMER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SAI,E_ AND CORRECTION OF CERTAIN HAZARDOiJS CONDITIONS, City Manager McCauley explained that the Brooklyn Center Housing Commission passed a motion in December 1997 to recommend the Brooklyn Center City Council adopt a Time of Sale ordinance for the City. A draft ordinance has been prepazed and is modeled after the Time of Sale ordinance adopted by the cities of Bloomington and South St. Paul, which requires sellers to obtain an evaluation report from a private housing evaluator. Mr. McCauley asked Council direction on this issue. Council consensus was to gather public input on this ordinance and conduct a joint Housing Commission and City Council meeting in April to discuss the issue and invite public comment. RESOLUTION PRC)VIDiNG FOR RATIFICATION OF EXECIJTION OF DOCUMENTS TN CONNECTTON WITH DEFEASANCF, (�F THE C,'TTY'S $4_600_000 ELDERLY HOLJSINC'r REVENUE BONDS. SERIES 1996 (THF PRF,SBYT�.R AN �OMF.S OF M�IESOTA. INC.. PROJECTI City Manager McCauley explained that Presbyterian Homes has sold the Earle Brown Commons apartment complex to LaNel. As part of the sale, LaNel acknowledges assumption of the Elderly Housing Revenue bonds (issued ir: 1996 to Presbyterian Homes) and their corresponding responsibilities. 1/26/98 -6- T PRO EEDINGS OF THE HOUSING COMMISSION OF THE MINUTES OF HE C CITY OF BROOKLYN CENTER IN THE COUNT� OF HENNEPIN AND STATE OF MINNESOTA JOINT HOUSING COMMISSION AND CITY COUNCIL SESSION APRIL 21, 1998 COUNCIL CHAMBERS BROOKLYN CENTER CITY HALL CALL TO ORDER The Center Ciry� �Council was called to order by Mayor Pro Tem Kay Lasman at 7:00 p.m. The Brooklyn Center Housing Commission was called to order by Chairperson Robert Torres at 7:00 p.m. ROLL CALL Chairperson Robert Torres, Vice-Chairperson Ernie Erickson, Commissioners Lloyd Deuel, Mark Yelich, Donald Arm, James Lano, Christopher Russell, and Michael VonDeLinde. Council members present were Kay Lasman, Debra Hilstrom, Bob Peppe and Kathleen Carmody. Mayor Myma Kragness was absent and excused. Also present were City Manager Michael7. McCauley, Community Development Director Brad Hoffman, Building Official David Fisher and Community Development Specialist Tom Bublitz. Commissioner Jonathan C'�rter was absent from the meeting. APPROVAL OF AGEND.� There was a motion by Commissioner Erickson and seconded by Commissioner Arm to approve the agenda, as submitted. The motion passed. APPROVAL OF MINUTES JANUARY 20, 1998 There was a motion by Commissioner Arm and seconded by Commissioner Deuel to approve the January 20, 1998, Housing Commission minutes as submitted. The motion .Passed. APPROVAL OF MINUTES FEBRUARY 17, 1998 There was a motion by Commissioner Arm and seconded by Commissioner Deuel to approve the February 17, 1998, Housing Commission minutes as submitted. The motion passed. 4-21-98 -1- STAFF PRESENTATION ON PROPOSED TIME OF SALE ORDINANCE The Community Development Specialist reviewed a series of question and answers included in the Housin g Commission and Council packets and made available to pe r s o n s i n t h e a u d i e n c e. f- He explained the purpose of the proposed Time of Sale Housing Inspection Program is to provide potential purchasers with information about the condition of a dwelling and would require the correction of items defined as immediate hazards. He reviewed the following list of questions and answers with regard to the proposed Time of Sale Inspection Program. What dwelling units are affected? All single family and two family, including condominiums and townhouses. Mobile homes are included. When must the property be inspected? The property must be inspected and a report form completed prior to offering the properry for sale. The Housing Evaluation Report must be available for review by potential purchasers at all times that the property is offered for sale. Who does the evaluation? The seller can choose any licensed independent housing evaluator who maintains a current certifzcate of competency from the City of Bloomington, Minneapolis or St. Paul. These cities provide for testing and certification of private housing evaluators. The City will maintain a list of privaxe housing evaluators who meet the cenification requirements of the cities designated in the City of Brooklyn Center's proposed ordinance. Evaluators must request to be placed on the list and show proof of the required insurance. What does an evaluator do? The evaluator will examine the dwelling's visible structural elements; heating, electrical and plumbing systems; and other components of construction. The evaluator will look into accessible, unoccupied areas such as attics and crawl spaces, but will not take apan any building components. The evalualor cannot identify conditions that are hidden and inaccessible. How much does it cost? Based on similar programs in other cities, the initial evaluation report may cost the seller $100 to $125. This is an estimate only and the actual fee will be negotiated between the seller and the private evaluator. If hazardous items are noted in the initial evaluation report that do not 4-21-98 -2- require permits and it is necessary for the private evaluator to re-inspect the property to evaluate correction of the hazardous items, the inspector may charge an additional fee. Hazardous items I requiring permits to correct will be reinspected by Ciry building inspectors. Standard building permit fees will be charged for these items. How are corrections of hazardous items monitored? When hazardous items are identified by the evaluator, correction of the identifzed hazardous items must be made. Follow-up on the correction of hazardous items will be done in the following ways: 1. For hazardous items not requiring building permits to correct, private evaluators will follow-up to make sure the items have been corrected. 2. For hazardous items requiring building permits to correct, City building inspectors will follow-up through the normal building permit process to make sure the items have been corrected. When must corrections of hazardous conditions be completed? Hazardous conditions must be corrected before the dwelling is occupied. If the dwelling is already occupied, corrective action shall be taken by the owner or agent of the owner. What are the most common hazardous items called out in housing evaluations? Based on the experience of other cities with similar programs, the following items are the five most common hazards found in housing evaluations. 1. Lack of or improperly installed smoke detectors. 2. Electrical fixtures and cover plates. These include outlets and junction boxes with missing cover plates and broken or cracked switches, outlets and fixtures. 3. Backflow prevention devices. Protection of potable water for inhabitants of a dwelling (and also the city water supply) is of great importance. In most cases, a hazardous water supply condition can be corrected by adding an anti-siphon backflow prevention device to the water supply. Common locations where a backflow prevention device is required are: a. Outside garden hose connections. (All must be protected). b. Laundry tubs with a threaded faucet for a hose connection. c. Hand-held shower sprayers that could hang into tub water. 4-21-98 -3- Other locations where backflow or siphoning could occur are toilet ballcocks that are i not located above the tank water line, any faucet that discharges below the spill line of its receptor, and lawn irrigation systems having improper backflow protection. These hazards must also be corrected. 4. Garage door openers. Marry garage door openers are plugged into extension cords. This type of wiring is a hazard. All garage door apeners must be plugged directly into approved outlets. An electrical permit be secured to install a new electrical outlet. Other appliances which cannot be connected to extension cords are water softeners, window air conditioners, washing machines, clothes dryers, sump pumps and other `pernianent" appliances. S. Electrical ground. Electrical systems must be properly grounded. One of the areas where grounding is required (and many times omitted) is around the water meter. A#6 wire (a #4 wire if electrical service is ISO amp or greater) is required to be attached to the house side of the water meter with an approved clamp and also to the street side of the water meter with an approved clamp. Must the seller correct hazardous items even if the house does not sell? Hazardous items noted in the evaluation report must be corrected even if the home does not sell. Owners will be given a reasonable amount of time to correct hazards not to exceed 90 days. Is the evaluation a warranty? No. The evaluation is not a guarantee or warranty. The Housing Evaluation Report will be completed through visual inspection of the property. The evaluator cannot guarantee that problems will not occur after the inspection. Building Official David Fisher then reviewed a slide presentation from the City of Bloomington. Mr. Fisher noted the slide presentation documents a typical housing evaluation done under Bloomington's ordinance which is the ordinance upon which Brooklyn Center's proposed ordinance is modeled. He noted the slides cover a"test house" done by the City of Bloomington and pointed out that a"test house" is essentially a means of testing housing evaluators with regard to their ability to perform evaluations under the City's evaluator guidelines. The slide presentation pointed out items that would be noted as acceptable, below minimum and also those items that would be called out as a hazardous condition under the ordinance. Examples of hazardous conditions in the slide presentation included lack of proper grounding for electrical systems, improper venting on water heaters, lack of cover plates on electrical outlets and lack of backflow prevention devices. He pointed out that the items in the slide presentation would be very similar to items that could be found in homes in Brooklyn Center under the ordinance as proposed. 4-21-98 -4- A resident in the audience stated that she does not think condominiums would require a Time of Sale Inspection and pointed out as an example the water marks on the ceiling of the home in the slide presentation wouldnot be found in a condominium. The Building Official pointed out that even if water stains were found in the ceiling that it would be a disclosure and not listed as a hazardous item to be corrected. The condominium resident stated that most items in the inspection don't relate to condominiums. She pointed out that she believes that a condominium is not like a single family home or even a town home. She also stated that people buying condominiums will check these items out before they buy. Councilmember Carmody commented that one of the issues discussed by the Housing Commission is the fact that most first time home buyers do not perform inspections on homes they are buying. Commissioner Arm commented that there really is no difference between single family homes and condominiums when things deteriorate, noting that both structures can have problems. The condominium residents in the audience noted that in their condominium, maintenance personnel are on site and handle the small problems and a maintenance company handles larger repair items. The residents stated that if condos are included in the ordinance this could create problems for the sale of condominium units. Commissioner Erickson inquired whether the inspection provisions of Chapter 12 addresses condos. The Building Off'icial noted that the ordinance does not address condominiums unless they are rental properties. Commissioner Erickson commented that when the Housing Commission initially started looking at a Time of Sale ordinance one of the individuals on the Commission at that time had moved into a Brooklyn Center l�e and within a month the deck fell off the side of the house. He noted the individual had to e a contractor to repair the deck. He pointed out that this situation is an example of how vulnerable first time home buyers can be since they tend to be the least experienced home buyers in the market. He noted that in his estimation the ordinance is a tool to attract buyers to the City and to make the city's housing stock more viable. Councilmember Carmody commented that there are a great number homes in Brooklyn Center that have been owned for over 30 years and some have been maintained and some have not. She noted a Time of Sale ordinance would begin to address some of the deferred maintenance items. A single family resident in the audience stated that he has owned his single family dwelling since 1954 and inquired as to what has happened that we now need a Time of Sale program and who is it designed to help. He explained his son bought a house in south Florida which was 13 years old and had lived there for 3 years when he was required to repair mildew and insect problems for a total cost of $2,000. �ie inquired as to whether or not people will be taking advantage of homeowners by such an irffipection program. I 4-21-98 -5- Councilmember Carmody noted that in her estimation the benefit of a Time of Sale program is to the first time home buyer. She cited the St. Louis Park Time of Sale ordinance, noting it is a very restrictive ordinance, and that the proposed Time of Sale ordinance in Brooklyn Center bene�ts the City of Brooklyn Center by improving the maintena.nce of its housing stock. Commissioner Arm noted that Brooklyn Center has an aging housing and that many people buy started homes and then proceed to move up housing and may not maintain the starter home as well as it should be maintained. The single family resident noted that he is concerned that outside inspectors are brought in to inspect homes and that they will most certainly find things wrong with a house. CounciImember Lasman noted that the evaluator will receive their fee for the inspection whether they fmd in any items for conection or not. The ordinance is essentially designed to maintain the overall housing stock in the City. The single family resident noted that if a person decides to sell their house now no special inspection is required but if this ordinance is passed sellers will have to go through this process. He suggested that it may be better if we had City inspectors performing the inspections. Mr. Jack Kelly, who noted he was a previous Housing Commission and is a licensed realtor, noted that the inspectors under this program will be licensed and that he believes every suburb in the area will eventually have an ordinance similar to this and many now already do. Councilmember Carmody commented that on the City side to have the City staff administer the program is too costly. Councilmember Hilstrom explained that she had talked to realtors and they had brought up two issues with regard to a Time of Sale ordinance. She noted the realtors indicated that it was a positive thing that the ordinance will be disclosing items that are inspected in a house and secondly if any items need to be replaced they would suggest that the repairs be done in a quality fashion. In regard to maintaining quality in the repairs of any needed items Councilmember Hilstrom suggested that the repairs be negotiated between the buyer and the seller. She cited an example of a situation where the ordinance may require that a fumace be replaced and the seller would likely put in the most inexpensive furnace they could get and still comply with the ordinance. She noted that if the seller and buyer are able to negotiate this, the quality of the replacement furnace could be improved. The single family resident, who had previously addressed the Council and Commission, stated that he is concerned that houses with older furnaces like his, even though they are in good condition, may be called out to be replaced. Commissioner Erickson pointed out that the evaluator would need to find specific problems with the furnace that could be verified by a heating contractor and could not call out for the 4-21-98 -6- replacement of a furnace simple because it was an older style fumace. Cou�ilmember Lasman noted that the inspections under a Time of Sale program are objective inspections and evaluators are not looking for problems since they do not receive more compensation if they find items to be corrected. Councilmember Hilstrom left the meeting at 8:15 p.m. Commissioner Arm commented that, with regard to the mold and insect problem in the home in Florida, mold can be a very signif'icant health problem a�d that this is probably something that should have been corrected. Councilmember Carmody left the meeting at 8:20 p.m. Mr. Bill Gerst addressed the Housing Commission and Council and noted that is was representing the Minz�eapolis Area Association of Realtors. Mr. Gerst noted that the ordinance as proposed is not out of line with the Association's guidelines for these types of ordinances and the use of private evaluators and correction of hazardous items is in keeping with the Association's guidelines. Councilmember Carmody retumed to the meeting at 8:25 p.m. Mr. Gerst continued his comments noting that the City of Minneapolis is now debating a change in their ordinance which would add correction of hazardous items to its disclosure type ordinance. He noted that one of the more important issues he would like to address is that in any Time of Sale ordinance he does not want to see the ordinance slow sales down in any way. He noted the ordinance proposed by the City of Brooklyn Center is somewhat of a hybrid ordinance based on the Bloomington ordinance. He also pointed out that more and more people are doing buyer inspections even with Time of Sale ordinances in effect. The buyer inspections typically involve a more comprehensive inspection than the Time of Sale type inspection. The Housing Commission and City Council continued to discuss the ordinance and the City Manager pointed out it is up to the City Council to put the item up for first reading if they believe it is acceptable. Councilmember Carmody stated that she believes the ordinance is ready the way it is and Councilmember Peppe stated that he wants to make sure that we do not slow the process down. Mr. Bill Gerst commented that under the ordinance if the seller puts their home on the market and it does not sell the ordinance requires that the hazardous items must be repaired. He pointed out that the Council should make sure there is an enforcement mechanism to assure the correction. The Housing Commission and Council continued to discuss the enforcement mechanisms in the ordinance and expressed concern over the monitoring of corrections of 4-21-98 hazardous items in cases where the correction of hazardous items are deferred to the buyer and also in cases where the home does not sell and the owner is required to correct the hazardous items. The Community Development Specialist noted that this particular ordinance has less staff involvement than other similar ordinances in other cities and that there are some items with regard to monitoring hazardous items that will be done by private evaluators and that this is part of the trade off for less staff involvement in an ordinance of this nature. After continued brief discussion of the ordinance, there was a general consensus among Council members and Housing Commission members to go forward with a first reading of the ordinance. ADJOURNMENT There was a motion by Councilmem6er Carmody and seconded by Councilmember Peppe to adjourn the City Council meeting. The motion passed. There was a motion by Commissioner Arm and seconded by Commissioner Deuel to adjourn the Housing Commission meeting. The motion passed. The Brooklyn Center Housing Commission and City Council joint meeting adjoumed at 8:35 p.m. ��yor P r o f c vrt C-�airpers�l�- C�'� C1���. 4-21-98 -8- Co��c� M �ww �.1 North. The subdivision would create four new lots for development and one lot which would contain an existing single family home. The preliminary plat shows the extension of Indiana Avenue to link to June Avenue. All of the progosed lots meet the minimum requirements for single family residential lots. Two lots will front on the new roadway connecting June and Indiana Avenues; the other two lots will front on Halif� Avenue. The Planning Commission recommended approval of the preliminary plat at its Apri130, 1998, meeting. Councilmember Cazmody noted in the City Engineer's report there was mention of a portion of the roadway being in the flood plain. Mr. Warren responded that, a slight portion would be in the 100 year high water level. It was allowable and not uncommon to have a roadway in a flood plain. Councilmember Hilstrom raised the issue of notification to the property owners of the dead-end street converting to a through street. Mr. Warren responded the requirement is to publish the public hearing notice in the local newspaper; however, there is no requirement to individually notify surrounding property owners. There was a motion by Councilmember Carmody and seconded by Councilmember Lasman to approve Planning Commission Application No. 98007 submitted by Accessible Homes, Inc. (Doug Peterson) requesting preliminary plat approval subject to the following conditions recommended by the Planning Commission: 1. The final plat is subject to review and approval by the City Engineer. i 2. The fmal plat is subject to the provisions of Chapter 15 of the City Ordinances. 3. Appropriate drainage and utility easements shall be provided around the proposed Lot 1, Block 2 in a manner acceptable to the City Engineer, and the required easements on the other lots be verified, prior to final plat approval. 4. This preliminary plat is subject to the review and approval of the Shingle Creek Watershed Commission prior to final plat approval by the City. 5. The applicant shall enter into a subdivision agreement related to design and construction of infrastructure improvements, the proposed vacation of right of way, and utility hookups prior to fmal plat approval. The motion passed unanimously. 9. COUNCIL CONSIDERATION ITEMS 9a. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIME OF SALE HOUSING INSPECTION, REQUIRING AN INSPECTION, DISCLOSURE OF CONSUMER 5/11/98 -5- I, INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS F City Manager McCauley explained the ordinance was recommended and referred to the Council by the Housing Commission. The purpose of the ordinance is to provide for an inspection of a home I for hazardous conditions prior to sale. It would be inspected by a licensed, qualified inspector. Any hazardous conditions would have to be corrected before the closing. Tlie ordinance would impact City staff in the event a pernut is needed for correction of the hazardous condition. Councilmember Hilstrom asked who will oversee the program, how much staff time would be involved, and if the current staff level sufficient. Mr. McCauley responded the Building Official will oversee the program; the amount of staff time is difficult to estimate; and current staff levels should be sufficient, with possible addition of part- time clerical support. Mayor Kragness explained the concerns she has received from residents relate to the cost of the initial inspection, especially from senior adults. Discussion ensued regarding the language on page S, letter "d" which reads, "If due to hardship the owner cannot undertake corrective action, the buyer may elect to correct immediate hazards identified in the evalua.tor's report." Councilmember Hilstrom said she would like to see this section of the Ordinance a11ow for the buyer and seller to negotiate correction of repairs even if there is not a hardship. Councilmember Carmody explained that one reason to include this language was because there is a high number of first-time home buyers in Brooklyn Center and it should be the seller's responsibility. There was discussion regarding how the City would be notified of corrections if the City in�olvement was limited only to those hazards which require a permit. Community Development Specialist Tom Bublitz explai.ned the inspection certificate would need to be available at the closing in order for the property to be sold. In the case of the non-pernut items, the reinspection is done by the private inspector; permit items would require the City inspector to approve. Councilmember Carmody requested that a slide show be presented at the next Council meeting which depicts what types of hazards exist. There was further discussion regarding the issue of completion date of required corrections and how the City would be notified and amending language to provide that a buyer and seller can negotiate who will make the repairs, while at the same time making the seller responsible. City Manager McCauley explained the premise of the proposed ordinance is to rely on the real estate community for compliance with the Ordinance. With regazd to houses for sale by owner, they aze 5/11/98 -6- still subject to the requirements of the Ordinance. Residents would need to be educated of the e Ci newsletter. requirements of the Ordinance through public notice such as th ty It was Council consensus to direct staff to draft new language addressing the issues of the removal of the hardship requirement, completion date requirement, and to address the issue of compliance in tr�e event the house doesn't sell. A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to table an ordinance amending Chapter 12 of the City Ordinances implementing a time of sale housing inspection, requiruig an inspection, disclosure of consumer information concerning the condition of a dwelling prior to its sale, and correction of certain hazardous conditions passed unanimously. 9b. RESOLUTION GIVING PRELIMINARY APPROVAL TO A SENIOR HOUSING PROJECT ON BEHALF OF BOCA LIMITED PARTNERSHIP, AUTHORIZING APPLICATION FOR ALLOCATION OF ISSUANCE AUTHORITY AND CALLING PUBLIC HEARING City Manager McCauley explained that this is a request from Boca Limited Partnership for the issuance of $7.2 million in housing revenue bonds in connection with the acquisition and rehabilitation of Shingle Creek Tower and tax credits in the amount of $750,000. The bonds would not be obligations of the City. Owners of property built with Federal assistance are now able to pay ofr mortgages early and remove the current income limitations as to the residents and the rent limitations and go market rate with rents. There is a program which provides for sticky vouchers to make up the difference between the proposed rents and current rents. Community Development has been approached by other persons looking at development with a similar view of these type of financing mechanisms. The housing bonds would increase the properiy value. The request is for preliminary approval and calling public hearing. It was noted there were several residents of Shingle Creek Tower in the audience. Mayor Kragness said she received letters from the residents with concerns relating to the rent increases and their ability to afford the increased rents. Mayor Kragness opened the meeting to public comment. Nevin Hench, resident of Shingle Creek Tower, expressed his concern that the rents aze currently borderline affordable and even a small increase in rent would be a hardship. He believed the cutrent building was fine. Paul Lane, resident of Shingle Creek Tower, said Mr. Boisclair held a meeting last week and had presented a list of proposed improvements. It was noted Mr. Boisclair was not present at the meeting. Mr. McCauley said NIr. Boisclair was notified of the meeting. 5/11/98 i Councilmember Carmody asked if there were income sta.tistics for the residents of Shingle Creek Tower, i.e., wha.t percent are low-income? i Mr. Lane said he believed 25% aze on Social Security. Mary Hurkman, HOME Line, submitted a copy of a letter and a survey that Mr. Boisclair distributed to the Shingle Creek Tower residents. She referenced a section regarding assisted living and expressed concem that this would displace a11 the residents. Councilmember Hilstrom asked if there is a time frame for Mr. Boisclair to apply for the bonds. Community Development Director Brad Hoffman said he believed Mr. Boisclair was interested in the January cycle of bonds. A motion by Councilmember Hilstrom and seconded by Councilmember Carmody to table to the May 26, 1998, Council meeting, a resolution giving preliminary approval to a senior housing project on behalf of Boca L'united Partnership, authorizing application for allocation of issuance authority and calling public hearing passed unanimously. Councilmember Hilstrom asked how Mr. Boisclair would be notified of the meeting. Mr. McCauley responded he would be notified by mail. 9c. RESOLUTION AUTHORIZING THE PURCHASE OF THE LAND AT 6717/6737 HUMBOLDT AVENUE NORTH BY THE CAPITAL IMPROVEMENTS FUND FROM THE ECONOMIC DEVELOPMENT AUTHORITY FUND FOR USE AS THE SITE OF THE POLICE STATION City Manager McCauley said the resolution authorizes the City to purchase from the EDA the land located at 6717/6737 Humboldt Avenue North to use as the site for the police sta.tion. The EDA had used CDBG funds for a portion of the purchase price of the property, and the EDA will have to repay those CDBG funds to Hennepin County to the extent that they reflect the fair market value of the land. At the May 26 meeting, there will be an EDA resolution to accept the City's offer to purchase the land. Mr. McCauley explained that Ms. Chambers had spoken with a representative from Commissioner Opat's office regarding the probation office request. The building design was too faz along to include the probation offices. $ESOLUTION NO. 98-79 Member Carmody introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE PUR.CHASE OF THE LAND AT 6717/6737 HUMBOLDT AVENUE NORTH BY THE CAPITAL IMPROVEMENTS FUND FROM THE ECONOMIC DEVELOPMENT AUTHORITY FUND FOR USE AS THE SITE OF THE POLICE STATION 5/11/98 -8- Cokw�tl /ti,'va �t.J At this point the agenda was renumbered, and this item was deferred to be discussed as item no. 9h. City Manager McCauley explained this resolution authorizes the City to purchase the property for the Earle Brown Heritage Center parking lot. Since the purchase agreement was not available, it was recommended this item be tabled to the next Council meeting. A motion by Councilmember Carmody and seconded by Councilmember Lasman to table a Resolution Authorizing Acquisition of Property for Earle Brown Heritage Center Pazking Lot passed unanimously. 9g. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIME OF SALE HOUSING INSPECTION, REQUIRING AN INSPECTION, DISCLOSURE OF CONSUMER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO. ITS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS At this point the agenda was renumbered, and this item was deferred to be discussed as item no. 9i. City Manager McCauley referred to an alternate ordinance amendment which Staff drafted incorporating language changes recommended by the Council at its last meeting. Mr. McCauley reviewed the types of hazards that would be recorded in the report as at-risk or safety hazazds. He included electrical wiring, grounding, outside plumbing, floor drain cleanout plug, leaky roofs, fiunaces, water heaters, smoke detectors, and any other items that create a life safety condition. Councilmember Lasman raised a concern with the language in Section 12-1511, stating she doesn't support it as it may not do what is intended. Council Members discussed the alternate language as it relates to the intent of the ordinance and also the need to move the ordinance along. Councilmember Hilstrom stated that the ordinance needs to be written to address conecting hazards identified during inspections whether or not the house sells after being inspected. Mr. McCauley recommended the Council approve first reading of the alternate ordinance as written, which includes more restrictive language. At the second reading, if the Council wishes, the ordinance can be revised to be less restrictive; however, it cannot be modified to be more restrictive without setting an additional public hearing. I, Councilmember Hilstrom inquired if there would be a staff requirement to add this ordinance provision. She does not want to create more staff time, but there does need to be a reason for residents to comply with the ordinance. 5/26/98 -10- City Manager McCauley responded that the premise of the ordinance is outside of City staff, and the City would rely on the Realtors to make the requirement known to the sellers. The City would be involved only on the conections requiring permits for compliance. A motion by Councilmember Peppe and seconded by Councilmember Lasman to approve first reading of the ALTERNATE Ordinance Amending Chapter 12 of the City Ordinances Implementing a Time of Sa1e Housing Inspection, Requiring Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Correction of Certain Hazardous Conditions passed unanimously. The second reading and public hearing will be scheduled for June 22, 1998. I 9h. SPEAKER CARRUTHERS, SENATOR SCHEID, AND REPRESENTATIVE CARLSON Speaker Phil Carruthers provided a legislative update, stating it was an e.ccellent experience working the City. He reviewed the approved legislation as follows: 1. Equity funding for K-12 education, which provides State Aid increases to the four school districts in Brooklyn Center. 2. Brookdale taxing bill, which provides financing options to allow the City to assist with financing for the redevelopment of Brookdale without increasing the property owner taxes. I 3. Legislation to keep affordable housing, new Class 4D reduced Class and its effect, aid program for sustaining loss capacity, loss made up by the State of Minnesota. 4. Federally assisted housing, funds made available to preserve the availability of affordable housing. 5. "This Old Apartment," in which landlords who make significant improvements to their apartments (over $2,500), the improvement will not accrue against the apartment building. 6. After school enrichment program funding for at-risk youth. 7. $2.5 million grant for Earle Brown Heritage Center and the sales tax exemption. Senator Linda Scheid eYpressed her appreciation for the work of the Mayor, City Staff, and citizens who provided support at the legislature. Planning and communicating is the key to getting results. She encouraged the continuance of the open communication. Representative Lyndon Carlson reported that it was a good year at the legislature, a real victory. He �/26/98 -11- M.��o f a� 22 9� 1VIEMORANDUM �w.6 ,ti -�-e� �iv o d TO: Michael J. McCauley, City Manager ��'Q ���1( j•� FROM: Tom Bublitz Communi Development Specialist�� tY DATE: June 18, 1998 SUBJECT: Proposed Time of Sale Ordinance The City Council approved, for first reading, the proposed Time of Sale ordinance, at their May 26, 1998, meeting. This memorandum provides follow-up to questions and issues raised at the May 26th meeting and provides some additional information regarding the change in the Minneapolis Area Realtors Association policy on Time of Sale and the current status of the proposed Minneapolis Truth in Sale of Housing ordinance. PUBLIC HEARING ON PROPOSED MINNEAPOLIS TRUTH IN SALE OF HOUSING QRDINANCE On Thursday, June 11, 1998, the fourth of four public hearings was held on the proposed Truth in Sale of Housing ordinance in the City of Minneapolis. Like Brooklyn Center's ordinance, the Minneapolis ordinance is based on Bloomington's Time of Sale ordinance. A copy of a brochure describing the proposed Minneapolis ordinance is attached to this memorandum. Testimony wa� offered by a number of people at the Minneapolis hearing, including several Realtors. Two observations made by several of the speakers were: The quality of the Truth in Housing inspections done by private evaluators under the City's current Truth in Housing disclosure ordinance is inconsistent due to the varying quaiity of the inspections and because the inspections do not e�end beyond examining items that are immediately visible and accessible. Within the last twa to three years the number of buyer initiated inspections for new home purchases has increased dramatically. Because of the increasing buyer awareness and use of buyer inspections, the need for a government required inspection no longer exists. I recently spoke with NIr. Bill Gerst, Vice President of the Minneapolis Area Association of Realtors regarding this trend and he indicated he is attempting to assemble hard data on the increasing use of buyer inspections. A Minneapolis City Council Committee is scheduled to vote on the proposed Time of Sa1e ordinance I on Wednesday, June 17, 1998. If passed out of Committee, the ordinance would go to a vote of the full Council June 26, 1998. CHANGE IN POSITION STATEMENT OF MINNEAPOLIS AREA ASSOCIATION OF REALTORS Because of the controversy created by the proposed Minneapolis Truth in Sale of Housing ordinance, the Minneapolis Area Association of Realtors has changed its position on Time of Sale ordinances. Whereas, prior to the proposed Minneapolis ordinance, the Association endorsed Time of Sale ordinances requiring correction of a limited number of items classified as hazazdous, they now oppose any code compliance at the point of sale. A copy of their revised position statement is attached to this memorandum. ISSLTES AND QUESTIONS RAISED AT MAY 26, 1998, CITY COUNCIL MEETING Tha Brooklyn Center City Council approved the "Alternate" version of the Time of Sale ordinance at its May 26, 1998, City Council meeting. After reviewing the minutes of the May 26th meeting, and my notes of the meeting the following items were noted: Councilmembers Lasman and Peppe raised concerns with the language in Section 12-1511 (Immediate Hazards). This section requires two things: 1. A copy of the evaluators report must be filed with the City Building Official under the following circumstances: a. The immediate hazards are hazards requiring a building permit for their conection. b. The evaluator has not reinspected the property and determined that the immediate hazards have been corrected within 90 days of the original inspection. Paragraph b of Section 12-1511 presumably addresses situations where homes go off the mazket and are not sold. Councilmember Hilstrom wanted to know the impact of the ordinance on current staff. Councilmembers Peppe and Carmody requested a specific list of hazardous items. Staff has prepared a list attached to this memorandum. The list includes all items defined as hazardous from Bloomington's program guidelines. I have reviewed the list from Bloomington with the City of Brooklyn Centers Building Official and he agrees that the list from Bloomington would also serve as the list for Brooklyn Center's program. The City Council has also requested that staff provide some indication of staff time required to administer the ordinance. As proposed for first reading, the Time of Sale ordinance now requires that Building Inspection staff reinspect items called out as hazardous in the evaluation report which require pernuts and would also require reinspection of hazardous items in situations where the private evaluator has not reinspected the property in 90 days, which may indicate the house has been taken off the market. The ordinance as published, requires written consent from the City where conections of hazardous items are deferred to a buyer. Section 12-1508, paragraph 5, a, b and c is the portion of the "Alternate" ordinance, published for first reading, which requires written permission from the issuing authority where they buyer intends to correct the hazardous items. This section has been deleted (lined out) in the attached alternate number two and it is the only difference between the original alternate and the revised Alternate Number Two. Section 12-1508 essentially relates back to previous version of the ordinance where a determination of a hardship was required to d�efer correction of hazardous items to buyers. With the hardship provision eliminated, this section can be deleted. CITY STAFF DOES PERMIT REINSPECTIONS, REINSPECTION OF HAZARDOUS ITEMS DEFERRED TO BUYER AND REINSPECTIONS OF HAZARDOUS ITEMS IN HOUSES TAKEN OFF THE MARICET Estimates of staff time are based on 400 sales per year which is a 3 year average for home sales in Brooklyn Center in 1995, 1996 and 1997. 1. PERNIIT REINSPECTIONS Staff estimates at least 30% or 120, of the 400 sales would contain hazardous items requiring a building permit. This would require approximately 45 minutes per reinspection, including drive time for a total of 90 hours. Additional time for filing and reviewing evaluation reports and inspection reports would be 60 hours. Additional time spent communicating with sellers, buyers, contractors, realtors etc. is estimated at 60 hours. Tota1 time would be 210 hours. 2. REINSPECTIONS ON HOMES NOT SOLD Staff estimates 10%, or 40 homes may be taken off the market, resulting in follow-up and reinspection by City staff. This would mean approximately 30 hours in inspection time and another 40 hours of administrative time filing evaluation reports, working with owners and contractors and possibly issuing compliance orders. The total estimated staff time for items 1 and 2 above is approximately 280 hours or 14% of a full time year round position. If staf� did all reinspection of hazardous items it is estimated to take approximately 500 hours or 24% of a full time building inspection position. This total does not include staff needed to initially implement the program including preparation of forms, meeting with private evaluators to introduce the program and preparation of public information materials needed to start the program. For the first year this would take an additional 160 hours. These estimates are based on the exgeriences of inspector programs in other cities. The estimates are quite speculative, since it is very difficult to predict exact numbers in a program of this nature. ESTIMATED BUII,DING PERMIT REVENUES AND PERSONNEL COSTS 1. PERMIT REINSPECTIONS Based on 120 (210) hours) inspections, estimated building permit revenue would be approximately $3,060.00 to $4,260.00. The estimated staff cost for 120 inspections would be $7,350.00. 2. REINSPECTIONS ON HOMES NOT SOLD, Based on 40 inspections, building permit revenue would be approximately $1,020 to $1,420. The estimated staff cost for 40 inspections would be $2,450.00 The total estimated staffcost reflected in items 1 and 2 would be $9,800.00. 3. CITY STAFF PERFORMS ALL REINSPECTIONS, If city sta.ff did all reinspections the staff cost based on 500 hours, would be $17,500.00. In addition, the 160 hours of sta�time to initially implement the program would cost $5,600.00. STAFF COST AND REVENUE SI.TMMARY 1. and 2. PERMIT REINSPECTIONS AND REINSPECTIONS ON HOMES NOT SOLD, Staf� cost $9,800 Revenue $4_080 to �5_680 NET COST $4,120 TO $5,720 Additional Startup Cost First Year $5_600 TOTAL NET COST $9,720 TO $11,320 3. CITY STAFF DOES ALL REINSPECTIONS, Staff Cost $17, 500 Revenue 4_080 to �5_720 NET COST $13,425 to $11,780 Addition Startup Cost First Year $5_600 TOTAL NET COST $19,025 to $29,280 Common items that would be Common items that wou�c� NOT be required to be repaired or replaced: required to be repaired or Truth in Sale ofHousing (this is not a code compliance) replaced: 1. Lack of properly located or operational 1. Roofs smoke detectors The Cuffent ordinance was 2. Broken or jagged glass 2. Missing storm or prime windows or doors enacted in 1975 as a disClosufe 3. Unsafe heating systems-may need to certifiy 3. Missing window sashes as safe only report and has not been 4. Unsafe electrical systems-usually this will 4. Holes in walls or ceilings updated since. mean exposed wires, ungrounded or improperly fused systems 5. Painting The proposed ordinance .would 5. Unsafe plumbing systems-usually this will 6. Tom or broken tile or carpet mean missing water pipes, missing water also require that certain heater pressure-temperature valves, openings in waste/vent lines, missing 7. Plumbing "s' traps lif�/safety i#�ms be repaired or cleanout plugs in floor drain 8. Change galvanized plumbing systems to replaced. This would not be a 6. Lack of utilities (gas, water, electricity) copper, as long as it is functional full code compliance. Either the 7• Unsafe structural systems--usually this will be broken or deteriorated basement or 9. Change 30amp or 60amp electrical seller or buyer could do the exterior steps service to 100 amp, as long as it was not 8. Improper gas flex lines, uncapped gas lines tampered with, or overtused repairs. 9. Excessive disorganized storage of newspapers, clothing or other items "Approval of fhis ordinance will 10. Gross unsanitary conditions, presence of subsfanfially improve fhe garbage or other unsanitary materials condifion of housing both in the WORK NOT Third Ward which 1 represent and �iEauIRED throughout the City" says Council Vice President Joe Biernat. i' r Many other cities i� area have Truth-in-_ How the process wouid work: Housing ordinances' similar to the one 1. Owner deCides to sell Minneapolis is proposing, which is based on the Bloomington ordinance and repair list p�,� P 0 S ED 2. Owner prepares house for sale g Bloomington's ordinance was enacted in 3. Owner has Truth-in-Housing report ss5 T R U T H� N' done South St. Paul adopted the same S A L E o f orclinance as Bloomington, in 1996 H O U S I N G 4. Owner makes any repairs required from the Truth report i Richfield requires code compliance O R D I N A N C E St Louis Park requires code compliance What required 5. Owner has the City inspect and What's not- St Paul requires that hard-wired smoke How it works- approve the repairs detectors be installed 6. City sends owner Certificate of These cities have found both housing sales Approval and housing values to be increasing. 7. Owner provides Certificate at FO R SA LE closing as proof that required work is done =8. Buyer m�y do�repairs by making arrangements with the City with an escrow Department of Regulatory Services Minneapolis Inspections Division Room 300 Public Service Center 250 South 4th Street Minneapolis, MN 55415 6T3-2031 673-5862 Time of Sale Housing lnspection Ordinances Minneapolis Area Association of REALTORS� housing exteriars, responding to individual complaints about A primary concern of the Minne- problem properties, and setting apolis Area Association of REAL- up a revolving Ioan fund to assist TORS� is a healthy housing homeowners with city mainte- stock. This is especially true at a nance requirements resulting time when the majority of hous- from these inspections. ing in our cil,ies and inner ring Homeowners would need to suburbs shows increasin� signs of qualify for these loans and could repay them when the property is age. sold unless the homeowner However, the Association does not continued to live in the property believe that requiring code com- for a specified time before selling pliance at thc point of sale will the property. effecLively assist a community in If a municipality determines maintaining a liealthy, affordable housing market. Point of sale there ia a need for a point of sale inapection program, the Aasocia- I inspections affect only the sma11 erceni.a e of houscs that are sold tion would eupport a i,ruth iin P g housing report by a certified each year (3 to 5 percent in most areas). Most problem house� are private inspector rather than not for sale at any given time. To code compliance. Any resolut,ion of repairs based on the inspec- increase its effectiveness, a mu- �on should be prival.e negotia- nicipality should direct its efforts at the problem properties, rather Lions between buyer and seller at time o f sale. than only focus on point of sale inspeci.ions. or more information, call F This can be accomplished by Bill Gerst at the Association, general inspection sweeps of 988-3141. June 1998 (Rcviscd) HOUSING STANDARDS AND EVALUATOR GUIDELINES SUMMARY OF HAZARDOUS CONDITIONS (FROM CITY OF BLOOMINGTON GUIDELINES) NOTE: Items with the letter "P adjacent to them indicate that a building permit is requirec� 1NTERIOR BASEMENT P> Stairways not capable of supporting normal use loads. P> Potential for structural failure of the basement wall. P> Potential for structural failure of the columns. P> Posts which are not constructed as indicated or posts that apparently cannot carry all super imposed loads. P> Potential for structural failure of the beams. P> Potential for structural failure of the floor system. P> Potential for structural failure of the joists or other wood framing members. P> Potential for structural failure of the joist system. Clean out plug in floor drain must be secure. P> Minimum of .5 gallons per minute water flow is required at a minimum of 3 individual fixtures at any location above the basement level. P> Well water supply and City water supply must not be interconnected. The filler spout in the laundry tub water supply cannot have a threaded end or a hose connected to the spout. Leaking waste lines or indication of leakage or seepage in waste lines or fi�ctures. Abandoned waste or vent openings that are improperly plugged or capped or if openings are not plugged or capped. HEATING SYSTEM INSTALLATION AND OPERATION Excessive scale on burners and or bottom of burner compartment. Excessive flame distortion with the blower motor running. Excessive discoloration of the upper cover panel. Excessive rust and/or discoloration of the draft hood. *If these items ezist, certification of the heating system by a licensed contractor is required. These items would be marked "hazardous" pending certification. P> Gas fired heating plants must have the following safety controls: 1) thermostat; 2) gas shut ofF; 3) combination gas valve. If any of the safety controls is missing this is a hazardous condition. P> Fuel oil heating plants must have the following safety controls: 1) thermostat; 2) barometric draft regulator installed in the vent connector from the heating plant to the chimney. If any of the safety controls is missing it is a hazardous condition. 1 P> The hot water heating system where connected to a boiler, must have a backflow prevention device. No temperature and pressure relief valve on water heater. Improperly installed pressure relief valve or improperly located relief valve on water heater. Improperly installed plugs or caps which make either the relief valve or the relief valve drain piping inoperable. Back spillage detected on heating plant, water heater or gas clothes dryers. I The vent system must have no rust holes, back pitch, open joints and must be tightly sealed to the chimney. If vent piping for a gas clothes dryer is missing, burned out plugged or is provided with a damper. I P> Gas piping that has been improperly installed or use of unapproved materials. P> Use of unapproved connectors in gas appliances. Improperly plugged and capped disconnected or abandoned gas piping. I ELECTRICAL SERVICE Improper electrical service installation where electrical shock is possible by direct contact. (Requires electrical certification) Improperly grounded electrical service. Service ground must be connected directly to the street side of the water meter or by a grounding jumper installed around the water meter. Evidence of over-fusing or tampering with electrical service. (Requires electrical certification) Use of extension cords in lieu of permanent wiring in the basement. Broken receptacles, switches, missing plates or broken parts and electrical outlets, switches and fixtures. Lack of smoke detector in basement. Improperly located smoke detectors. Inoperable smoke detectors. INTERIOR ROOMS P> Dwelling must he provided with at least one toilet, one sink and one tub or shower. If the minimum number of fixtures is not provided it is a hazardous condition. Toilets must be connected to water supply system with anti-siphon ball cock and connected to a sewage system. Faucet supply openings located below the spill line. Leaking water piping supply. Leaking plumbing fixtures. Improperly installed gas piping or unapproved materials or support methods. Improperly disconnected or abandoned gas piping. 2 ELECTRICAL OUTLETS/FIXTURES/WIRING Use of extension cords in lieu of permanent wiring or extension cords located in inappropriate areas under floor covering, through walls etc. Improperly maintained electric outlets, switches, and fixtures. AUXILIARY HEATERS INSTALLATION AND WIRING P> Missing or inoperable shut off and safety controls. Rust holes, back pitch, open joints or unsealed vent to the chimney and clearances to combustibles. (Requires mechanical certification) WOOD BL;fRNING APPLIANCES Burned out or excessively rusted firebox, missing firebrick, burned out, excessively rusted or plugged flues and no vent. SMOKE DETECTORS (PRESENCE, LOCATION, OPERATIOI� No smoke detector in dwelling. Smoke detector not properly located. Smoke detector not operable. WALLS AND CEILING COMPONENTS P> Potential for structural failure of a wall or ceiling. STAIlZS AND RAII,INGS (UPPER FLOORS) P> Stairways not capable of supporting normal use loads. INTERIOR ATTIC SPACE P> Potential for structural failure of the rafters and/or sheathing. P> Plumbing vents not continuous to the outside. P> Chimney appears to be structurally unsafe. EXTERIOR ELECTRIC OUTLETS/FIXTURES/OVERI�AD SERVICE Electric outlets, switches and fixtures must be properly installed and maintained. 3 STAIIZS, DECKS, BALCOI�]IES, PORCHES AND THEIR RAILINGS If any stairs, decks, balconies, porches and their railings are incapable of carrying normal loads. WALLS SIDING AND TRIM P> Potential for structural failure of a wa1L CIII1VIlVEYS AND VENTS P> Potential for structural failure of the chimney. PLUMBING BACKFLOW PREVENTION No approved backflow anti-siphon device on outside hose connections. P> No approved backflow prevention installed at the correct height on lawn irrigation systems. GARAGE P> Potential for structural failure of the rafters and/or sheathing. P> Potential for structural failure of a wall. Extension cords being used in an accessory structure in lieu of permanent wiring. Etectric outlets, switches, and fixtures not properly maintained. P> Gas piping improperly installed. P> Use of unapproved single and wall flexible gas appliance gas connectors. Disconnected or abandoned gas piping that has not been properly plugged or capped. MISCELLANEOUS P Abandoned fuel tank. NOTE: Items requiring "certification" will require a licensed contractor in a specialized area (electrical or mechanical) to inspect the item and either sign off that the item does not need repair/replacement or that it must be corrected. 4 ALTERNATE CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 22nd day of June, 1998, at 7 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway, to consider an ordinance amending Chapter 12 of the City Ordinances Implementing a Time of Sale Housing Inspection, Requiring Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Correction of Certain Hazardous Conditions. Auxiliary aids for persons with disabilities aze available upon request at least 96 hours in advance. Please contact the City Clerk at 569-3300 to make arrangements. ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIl�fE OF SALE HOUSING INSPECTION, REQUIRING INSPECTION, DISCLOSURE OF CONSLJMER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. Chapter 12 of the City Ordinances of the City of Broo�clyn Center is amended by adding the following: Section 12-1501. Pi.TRPOSE. The t�umose of this Secti�n i� to enhance the su�nlv of safe_ sa.nitary and ade�uate housine for citizens of the citu of Brooklvn Centsr and to nrevent the deterioration of existine housin�. Section 12-1502. DEFII�IITIONS. The followin� words and terms when used in this Secti�n sha.11 have the followine, meanines_ unless the context clearlv indicates otherwise: 1. "Dwellin�" a buildin�_ or oortion thereof_ desi�r►ed or used predominantiv for I residential occuz�ancv of a continued nature. including one-famih� dwellinQS_ tw�-familv dwellin�s. and multinle familv dwellin�s� but not includin� hotels and motels_ 2. "Dwelline Unit" a sin�le residential accommodation which is arran�ed_ desi?ned. used or_ if vacant_ intended for use exclusiveh� as a domicile for one familu. Where a nrivate �a.rage is structurallv attached. it shall be c�nsidered as �art of the buildinQ in which the dwellina unit is located. ORDINANCE NO. 3."Mobile home" rincludes "Ma.nufactured" Homesl. A sinele f�milv dex,�ched dwellina unit desi�ned for vg�r-round �ccuoancv_ constructed a.t a factorv or a�semblv 1 n n drawn to the site on attached under cama�e and wheels. "Mobile Home' shall not include "Recreation Vehicle" as herein defined_ nor shall ix include modular or nrefabricated dwellin� unit� which meet or exceed the reauirements of the IJniform Buildin� Code. "Eval .�i .tion repQrt" a written revort preoared and si�ned bv,�erson licensed as a time of sale housin� evaluator in a communitv recoQnized bv the Citv �f Brooklvn Center on a form in comnliance with Section 12-1506 of this Code. "Immediate ha�d" a c�nditi�n or defect which is likelu tn cause inau ,r} t� o a�grson r r ertv if not correcx,�¢,. "Issuin� Authoritv" the Cixy Man�Qer or his/her design�ted reoresent.�,tive. "Owner's A�ent" a nerson who acts for or has the nower or authoritv to act far the owner of a dwellin� unit "Sale" the transfer of title or oossession of a dwellin� unit whether or not ahsalute title is transferred. "Vacant" a dwellin� unit which is not occu�ied. Section 12-1503. INSPECTION AND EVALUATION REPORT REOUIRED., 1. Excent as set forth in Section 12-1504 ofthis Code_ no dwelline unit or mobile home I located within the Citv mav be voluntarilv conveved for consideration bv deed ar contract for deed until the owner or owner's a�ent has first a�nlied for and secured an evaluation nrenared bv an evaluator meetine the reouirements under Section 12- 1505 of this Code. Z. A valid evalua.tion renort issued for the dwellin� unit in auestion shall be nrovided to the buver nrior to the execution of a ourchase a�reement. The bu�er shall be sun�lied a co�v of the written renort and shall si�n a coov acknowled�in� receint of that ren�rt. 3. If the structure is in comnliance with reauiremenxs of Section 12-1508 of this Code. the evaluation rer�ort shall state that the structure has been ins*�ected and is in conformance. An evaluation reoort is valid for one aear from the date of its issuance. The renort is valid onlv for the �wner listed on the reoort. 4. No nerson shall offer for sale b� exhibitin� or showine a dwellinQ unit within the citv without havin� first obtained an ins*�ection and evaluation renort as described in this ORDINANCE NO. Section. The evaluation repQ.rt shall be conspicuouslv disnlaved for insRg�,tion �the I premises at all times that such dwellin� unit is beine offered for sa.le., Section 12-1504. EXCEPTIONS. The nrovisions of Section 12-1503 do not annlv to: 1 Anv newlv constructed dwellina unit when title is transferred to the first owner. 2 The sale or other transfer of title of .�nv dwelling unit to a nublic lwd�,. 3 The sale or transfer of title of anv dwellinQ unix for the n,�pr ose of demolition. 4. The sale or convevance of anv dwellin� unit bv sheriff or other nublic or co�i officer in the nerformance of their official duties. This exemntion does not a�plv to the sale of a dwellin� uni erson a�pointed by a nrob�te cour�,. 5. The sale or convevance of anv entire multinle familv buildins. Section 12-1505, EVALUATOR REnIJIREMENTS� 1. Evaluators conductin� evaluations and comnleting evaluation reoorts under this Code must maintain a current unexnired Certificate of Comnetencv issued bv the Citv af Minneanolis_ St. Paul or Bloominaton. The Citu Council mav_ bv resolution. reco�nize Certificates of Comnetencv from additional cities. Evaluators must als� show nroof that he or she has a current unexnired Certificate of Comnetencv from at least one af the aforementioned recognized cities. 2. Evaluators conductin� evaluations a.nd comoletin� evaluation renorts under this Code shall also show or��f of eeneral lia.bilitv insurance insurin� the evalua.tor with insurance covera�es and liabilitv limits which mav be snecified from time tQtime bv_ resolution of the Citv Council. The eva.luat�r sha11 maintain insfirance continuouslv in force thereafter. The citU shall be included as a named insured on the insuraace reauired herein at the e�ense of the evalua.tor. The evaluator sha11 furnish the citv with a certificate of insurance which meet th i reauirements 3 The citv shall maintain a. list of the names and telenhone numbers of evalua.tors whq meet the reauirements �f this section_ The list shall be available to the *�ublic. ORDINANCE NO. Section 12-1506. FORMS., The citv shall or� re or a�thorize use of forms a,�t deems anoron_..�te to consxitute a disclosure under Sections 12-1501 throu�h 2-151 L The form shall nrovide information concernin� Code reauirements_ ma�or struct ,�l defect�n� immedia�te hazards to health_ sa�y and nronertv. Section 12-1507. DUTiES OF EVALUATORS., 1. �ch eval�i tor sh�ll com�lv with the followin� Maintain a current license with one of the reco�nized cities. Conduct all evalua,tions within t,he nro�ram's euidelines� Meet reauired continu.in tion reauirements est�blished�y_the reco�nizec� cities. listed in Secti�n 12-1 SOS. 2. Each eva.l t�.tor sha.11 c�m�lv with the f�ll�win�..,�rocedure for vreRarine and filing re orts;. a The evaluation report shall be either tv*�ewritten or le�ibl� nrinted in ink on forms furnished bv the citv. The reoort shall indica_te whether the condition af t�hg dwellin� unit meets cit�� reauirements. is bel�w citv reauirements or is deemed to be hazardous at the time and date of the eva.luatian. The eva.luator shall submit the ori�inal evalL�.ation report to the seller. Th.e evaluator shall keep a dunlicate cop�, Section 12-1508. CORRECTION OF INIMEDIATE HAZARDS.. 1. The f�ll�wina items. when discovered h`� the evaluator_ shall be identified as, immediate hazards in the evaluation renort: Heatin� sUStems that a.re unsafe due to burned out or rusted heat exchan�ers, burned out_ rusted or �lu��ed flues, no vent_ connection with unsafe �as suz�plies or incaoaci „tv to ade�uatelv heat the livin� soace• b. Water heaters that are unsafe due to hurned out or rusted heat exchan�ers_ burned out_ rusted or l���ed flues_ no vent_ connection with unsa.fe sas sunnlies or l� of temnerature and oressure relief valves., c. Electrical svstems that are unsafe due to da�n�erous �verloa.din�_ dama,�ed or deteriorated ec uinment_ im r�nerlv taoed or spliced wirin�_ ex�osed uninsL�.lated wires. temoorarv distribution s��stems_ or un�rounded s�rstems d Plumbine sustems that are unsanitarv due to leakin� waste svstems_ fixtures or trans, lack of an operatin� toilet. lack of washin� and bathin� .fa.cilities_ cross connecrion of munici�al water suonlv with fixtures or sewa�e lines_ or the lack of water. e. Structural svstems includin� walls. chimnevs_ ceilin�s_ roofs_ founda.tions_ fl�or svstems or decks which are not ca�able of carrvin� imnosed loads.. f. Exterior roofs_ walls. chimnevs and foundaxions that are not weather ti�ht and water ti�ht to the e�ent that it creates an immediate hazard., Abandoned stora¢e tanks. ORDINANCE NO. h�ck of o r i n 1 smoke detg�tors loc� in accord�nce witl�the a li 1 �r visi�ns of the I Jnif�rm BL�.ildin� C��g, 2 No occunancv shall be oermitted nf any�welling unit if vacant and an immedia�g hazard exixs. If the dwellin� unit is occunied and n�immed�te h z r exis�,, conective a�ti�rt sh�ll he t�,ken bv the owner or �nt of the owner. 3. When correctin i ntified ha�ds_ the owner sha.11 ob in 11 necessat�ermits from the ciXv and the nremises sh�ll be sub�_to ins�g�tion bv�n ev�luator nrior t4 occunancv of the dwellin�,. :.::::.;:.;:.;:.;>::.::.:;:.;:.:;:.:::;.:.::.;:;r.:::.::::»::::::::::;:>:<:::?:>:;:: ::.>:<.:::5::: .::::<.i::o �:::::::<::::::i`+::::: v::v':>i^:.?:.i:.:">:.>:.iY:: ::i }}i:.]?}:.i:.::.?:.1:::i:.}?:.T:.��:.i'<h:::: i.?:.>`:c:. a�l��' �+e��i� t� �:�t� 1�e �nt... �r er n�c� #1� S1£�#t �:>�1x���::.. #�3 d ,.s� :_a� 1� atts y{ y S ���i:fil�l.lf �A'C:>}::ti:.r:i{i�':::�iiiiii:�:�i::��:ii::$i'�:�:::::i:tiYi::Y.`.i'? �ii{>:::ii;;}:i'`�i'�?ji::T:�':ii:{�?ii'r'�:v?r:ti�i}iiii::j:i:•'i:;:?::i�?>'�`Ti:f:'vJCi�i�ti�ii:<::i+i:>�iiiiiitii'rii:iiii�i�;:ii:!;:;:;:yC!:::{i::: �i:::}::^::�ii:::i:::.::�x::::.�:::: �':::�:'•::S�iiiiii:�i::iTi: �:i:� iiii::}ti� v.. ��i�ned aareement from the buuer accentin� res�onsibilitv for conection of the hazardc��s i��ms; ::>::>:<::;<:::»:«:.:»:;::»::>::><:><>::>::>::>;::;:>::::»:<:x::<:::>:::: :.::::::::::::::<.;:.:;;;.>;;;;:.;::.;>;:;.::;.»:.:::;;;�:,:»:::<::::»:::<::,;,.:»::»::::>:::::<::<.>.:Y::>::::<:::;;::>::>:v:<:>`>::>;:::;.,::z;>::r:;::;:::::.»;:.;:><�;<::::.;;;:�.�:`<>�.:::::.::.:>::.; >:daxr:�:::�er:::t��r:�ake�>: �e.gs��r�lz :>:.:;>:;:<:::::;;::::::<:::::::>:::::<:>:>;::::>:>b ��.��hl�e: �o�n>da�� fha� �0 c evidence of financial abilit�� to nerform the correctians. The buver shall com±�lete the correction of identified immediate hazards bv the specified comoletion date. 5. If the owner is a. �ovemment a�encv or if an a�reement exists between �he owner and �uver tha�the buver will c�rrsct immediate hazards a�art of a remodelina r'e the buver mav correct immedi�te hazards identified in the evaluator's repQ�t. A buygr intendin� to correct immediats hazards must have written consent from the issuin� Authoritv. Such written consent mav be sub�ect to the terms and conditions, includin�• a. a si�ned a�reement from the buver acceotin� resoonsibilitv for correction of the hazard�us items; b. reasonable comoletion dates (no more than 90 da��sl; c evidence of financial abilitv to �erform t.he conections., The buver shall com�lete the conection of identified immediate hazards bv the snecified comoletion date. ORDINANCE NO. i Section 12-1509., FAILiJRE TO COMPLY., 1 The failure of a,nv owner_ a.�ent of an owner or hu�gr to comQl,v wizh the nrovision� of Sections 12-1501 throu�h 12-1512 �r to comnlv with an order issu.ed bv the citv pursuant to this Code_ sha.11 be a misdeme�nor. 2 The failure of a.nv eva.luator t� com�lv wixh the nrovisions of Section 12-1505 sh�ll misdemeanor and ma.v result in de-certification hv_the ci�y, The citv mav a.lso enf�rce *�mvisi�ns �f Secti�ns 12-1501 throu+�h 12-1512 bu m n mus_ iniunction_ or other �,pn�priate remedv in a court of cor��� Jurisdiction. Section 12-1510. WARRANTY LIMITATIONS., 1. Nothine in the eval��.tion renort shall indic�te or sha.11 be deemed t.o indicate that a dwellin� unit meets �.11 minimum ma.in n nce_ hou�g and buildin stand�r s. 2. Evalua conducted nursu n�,to Sections 1501 thro��h l S l2 are m�.(le in order to imnrove the overall housin� stock in the citv and a.re not meant to be a warrantv or auarantee �f the dwellinQ unit evalua.ted. The re�rt issued�y.,the ev�,luator is not� renresentation to am� individua.l buver, seller or renter rega.rdin� the condition of the buildin� nor is the rez�ort intended for the snecial benefit of am� individua.l. 3. The Citv of Brooklvn Center shall not incur lia.bilitv to a buver or anv other oerson bv_ reason of �oerformance or non-*�erforma.nce of the orovisions of Sections 12-1501, throueh 12-1512. .:::::;::;;::;:�:::::<:::::<:>::>~::;;";;°::'.?:`<:>:<:::>:::;::>::r<�;::::`:;.:>.::::<..,:;.;::..:;,,:;:.:,<.:.::. 1::. ..�,lT :>.::.�::::.�:::::::....::i::ij::::ii::2:ii>i:::...:.::.�::.::: ::o-: ;>:vi:::>:. :i: :;:i:;i:;i:3il;::::i:>5..�� ::.::::::::::;.::a::::.: .:::.�:::::<.»:.r: �?S?.....::....... ,�.�.h:.;:> 3 Q .:::�1�.: ������:shal� .:r+r►�ra�ar�t6#Y� �ltFi.4Sli� r�Q �$3F�� t ...��Yt. �,y i u iJ TII F� ::::>::::�e� fi�� .>:::.;;::i::;::.>: x:: q} f �y ::i:::•:::':::i:F:r:: :::'::::2:':::i::::::::::.:;::;:::=i:ti::::::5:::::::i::j:i:;.::::i:::::i::::i:::::::.::i::`::::;;::::'':;:.:':;:+;:::`::;:::::; f'Il� i: ii '5����tf�'�� $�tl��t�dt �,.�s�..... ��1 ��4'"...............................................:::::::.�.......::::.�::::::::........::::::::::.�::.:::......::.�::::.�:::::....::. �''r� i.... t r V.a' ":i::::iittit it: iti. �;:�;t:t<`: tt:'::::c:::i:%?:tt�i[;tt::::':::>[�'ittC� i'i::: i`:;' �::::iY:;:::t:::::t::tC:':::r::.:ct::>::t;: i:it:i:':::3: ;;i:;:�r>::>::;;::: »:;.;:>:::;:'<::ii::>::irF>•;;;.: »o-:.: �:::�io- ::::::........:::::::.w ::i;;i:i%;:;:iii:iii2:i;::iiii::iii£'i;i;;';:ii:::iiii i� ..:..................:.:::.::::::.�.�::::.�.>:.:::>:.:::::.::>::.::x::::::: �::::>:::i::i:%;;::i:::::ir:::::::i::i:t:::`:::`»>':.it:::.::::::::: t....::::::.� ::S i :�'v5''tiiiY: �::t;;:�� `i y �.s :.:.:v:......:::::::. _ii: :[::i:iti_:i%:;2iti>i: �i:::>::::i2::;ti?i::iii[::::k[[:;i::::ii:i`:::::k _:[:;:::::::5::;::::::::::::i`:i:'<i;;::;::::::::::::'<:i;.';%;:::;::i:>i:: i:`�:>:r '.::.::t<.»t:.�»::c.t;.::.:>:;.::�>:;.>x::<: o :.:::::::.:>:':o::.;>%::.:>::>:.:>:.»:<:<.::�::::i;:'<:::»:.:.::::::::::�::::::i:�:::::::::::�'�;:::i:i::::;G:.''::i:it:i�i::::i:t:;>%:;;::i::::::::Rt::::i"5:::::i5:'t:::i:t:C ..:.�:.::�'x��t�[�It��:<:::'t�F#�::»�b#'� a f i a r �4�. S F z �Zi��� [��°iiS::rti'S�i:�::3;:>:i[<t�:::3i�[<�:i�i[?�:::;�i;�:i:i:�::i::.'Cdf:�:S:>::=:i:i::a:;:;a:;»:t;o:os>:: :%'`�::%�x?"'., ::r:::::'k:: �R {.�ppf� i`i.:_;C.' :,i::'+•'�':.[.:cj:;::::;ti:::;;;::j±..[:i �'"'��'it:'i[�i:i:�t:�:,'::.::.:;:..'.:':::::'i::;i;�:�E:;t;;?t't;:::;�;.::'::%ki?j`}:.jc:`:?j';`:::::,;.;_y::.:::�?`i::;:'::.rjt'i: c"£fY�. �:.:s:;�:�+:� ;:::::::�>i2�<5:�:>:2�:i:%::::;i:;::i::�:'S'�:3;:;.�.���Y t. :rk:::?:5r;::>:.:»:.::.::»:a s>;::.:::.>:;.>o-:.::_:.>:::n;:::::;>s::.:>:::a>o-;:" :;'t`::: •:::i:::i:::::::i^:::::s :::ii::: ::::ii::i:`::i::i::iiii:i:iiii::::ii:i::i::i:::i::i:i:i.iiiiii?ii::':ii::ii::i:i:ii:Jji::::i:::i::::i':i''i:i:;::ji::i:::::iji:::ii:::ii::ii:ii:l:::ii4j:::i::i::tii:J::::::i: �:::iL:.: :i:i}:iv::ii:: .:in�i:::...n:. .:ii;: ::iiii:iiiiii:C: .i:: :n:i: i:i'i::i:i::':::: ::::ry'.:.:•:' v: �..•i: .i:•. .:i:i r d:�>:�:�� r. s ���€a :.:.:.:.::::.:..}:........_.:fi #�a.�ont�z� ..K�f!TQ. .�::F1j�':��'XY�L�� V 4a-�yi i Y!1!� >UF7� :�awf 7 t l' ..w�� .:�3� �'Y1 Section 12-1512. APPEAL- A nerson a�erieved bv a decision. notification �r order under this ordinance mav an�eal such decision n�tification or order to the coiincil which mav reverse. modif�� or af�irm the same after a hearing ux�on notiee to the aonellant. The a.�,peal must �il be in writin�_ lii necifv_the decision. notification or order a�nealed form liiil snecify with narticularitu the ba.sis and �rounds of the a.nneal. ORDINANCE NO. and (ivl be filed with the clerk on or bef�re 20 c�.avs foliowin� the date of the decision_ notifica.tion or order. Section 12-1513. EFFECTIVE DATE� Secti�ns 12-1501 through 12-1512 sha.11 he effective for dwellinQ L�.nits conveved on or after Januarv 1 1999. Section 2. This ordinance shall be effective after adoption and thirty days following its legal publication. Adopted this day of 1998 Mayor ATTEST: City Clerk Date of Publication Effective Date (Brackets indicate matter to be deleted, underline indicates new matter.) ALTERNATE NUMBER TWO CITY OF BROOKLYN CENTER s Notice is hereby given that a public hearing will be held on the 22nd day of June, 1998, at 7 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway, to consider an ordinance amending Chapter 12 of the City Ordinances Implementing a Time of Sale Housing Inspection, Requiring Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Conection of Certain Hazardous Conditions. Auxiliary aids for persons with disabilities are available upon request at least 96 hours in advance. Please contact the City Clerk at 569-3300 to make arrangements. ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIlVIE OF SALE HOUSING INSPECTION, REQUIRIlVG INSPECTION, DISCLOSURE OF CONSUMER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. Chapter 12 of the City Ordinances of the City of Brooklyn Center is amended by adding the following: Section 12-1501. PiJRPOSE. The Aumose of this Section is to enhance �he su�lv of safe. s�.nitarv and adeauate housin� for citizens of the citv of Brooklvn Center and to :�revent the deteriora.tion of exist.in� housin�, Section 12-1502. DEFINITIONS., The followin� words and terms when used in this Section shall have ihe followin� meanin�s_ unless the context clearh� indicates atherwise; 1. "Dwellin�" a building_ or nortion thereof_ desis?ned or used oredominantiv for residential occu*�ancv of a continued nature. includine one-familv dwellin�s_ two-familv c;wellings and multiole familU dwellin�s� but not includin� hotels and motels_, 2. "Dwellin� IJnit" a. sin�le residential acc�mmodation which is arran�ed_ desi�ned, used or_ if vacant_ intended for use exclusivelv as a domicile for one famil�r. Where a orivate garage is structurall� attached. it shall be considered as �art of the buildin� in which the dwellin� unit is, located_ ORDINANCE NO. 3."Mohile h�me" /includes "Manu.factured" H�me�l. A sin�le familv det�ched dwellin� unit desi�ned for vear occu vancv. construc.tec� at a factorv or a�,�semblv 1 n n i�r wn to the site on a�ched under c�rriage and wheels. "Mobile Home' sh�ll not incl�g "Recreation Vehicle" a.s herein defined_ nor sh�ll it incl�le mod�l r or nrefabricated dwellin,� unit� which meet or exceed. the reauirements �f the i Jnif�rm Buildina Codg� "Eval�tion re�rt" a written reuor�pre�red an si�ned bv,�person licensed time of sale housins evaluator in a communitv reco�nized bv the Citv of Broaklvn Center on a form in comDliance with Section 12-1506 of this C�de. "Immediate hazard" a condition or defect which is likelv to c�use iniurxto a nerson r r nertv if not correct�. "Issuin� Authoritu" the Citv Mana�er or his/her desi�nated represent�tive, "Owner's Ao�t" a�erson who a�ts for or has the z�ower or authoritv to act for the owner of a dwellins unit_ "Sale" the transfer of title or �ossession of a. dwelling unit whether or not absolute title is transfened. "Vacant" a dwellin� unit which is not occupied. Section 1 Z-1503. INSPECTION AND EVALUATION REPORT REnIJIRED., 1 Excent as set forth in Secti�n 12-1504 c�f this C;ode_ no dwellina unit or mobile home, located within the Giri� mav he v�lunta.rilv conve�ed for consideration bu deed or contract for deed until the owner or owner's a�ent has first an�lied for �nd secured an evaluation oreuared bv an eva.luat�r meetin¢ the reauirements under Section 12- 1505 of this Code. 2 A valid evaluation report issued for the dwellin� unit in c�uesti�n shall be nrovided ta the huver nrior to the execution of a�urchase aereement. The bu��er shall be suRnlied a conv of the written renort and shall si�r► a co*�v acknowled�in� receivt of that renort. 3. If the structure is in com*�liance with requirements of Section 12-1508 of this Code, the evaluation re�ort shall state that the structure has been ins�ected and is in conformance. An evalua.tion ren�rt is valid for one vear from the date of its issuance., The renort is valid onlv for the owner listed on the reaort. 4. No oerson shall offer for sale b�� exhibitin� or showin� a dwellin� unit within the citv without havin� first obtained an inspection and evaluation report as described in this, ORDINANCE NO. S�ti�n. The ev�tion re,port shall be conspicuou�v displaved for insnecti�n at the premises a all times t,h�t such dwellinQ is bein� offered for s�lg� Section 12-1504. EXCEPTInNS. The nrovisions of Section 12-1503 do not avnly to: 1 Anv newlv constructed dwslline iinit when title is transfened to the first owner. 2 The sale or other t.r�nsfer �f title of �nv dwellin� unix to a nublic bod�,. 3. The sale or transfer of title of a.nv dwellin� unit for the numose of demolition. 4 The sale or c�nveva.nce �f anv dwellin� L�.ni sheriff or other �blic �r cour� officer in t,h�,perf�rmance �f their officia.l uties. This exem�,tion does not, a�.piv to the sale of a. dwellin� unit bv a person a�ointed bv a,nrobate cour�,. 5. The sale or convevance of �nv entire multinle familv buildin,� Section 12-1505. EVALUATOR REOiJIREMENTS.. 1. Evaluators conductin� evaluations and comoletin� evaluation reoorts under this Code must maintain a current unexnired Certificate of Com±�etencv issued bv the Citv of Minneanolis. St. Paul or Bloomin�kon. The Citv Council mav_ bv resolution, reco�nize Certificates of Comnetencv from additiona.l cities. Eva.luators must also show nroof that he or she has a current unexpired Certificate of Comr�etencv from at least one of the aforementioned reco�nized cities� 2. Evaluators conductin� evaluations and com�letin� evaluation renorts under this Code shall also show nroof �f general liabilit�� insurance insurinQ the evaluator with insurance covera�es and lia.bilitv limits which ma�r be snecified from time to time bv resolution of the Cit�i C�uncil. The evaluator shall maintain insurance continuouslv in force thereafter. The cin� shall be included as a named insured on the insura.nce reauired herein at the expense �f the evaluator. The evaluator shall furnish the citv with a certificate of insurance which meets the citv reouirements� 3. The citv shall maintain a list of the names and teleohone numbers �f eval►iat�rs whca meet the reauirements of this section. The list shall be available to the �ublic. ORDINANCE NO. Section 12-1506. FORMS. The city shall DT�C.U�� or �thorize use of forms z�it deems a��ro n� ate to c�nstitute a� disclosure under Sections 12-1501 throuQh 12-1511. The form shall 7rovide information concernina Code reouirements. ma��r struct�l def�ct.s and immediate ha?ards t� health_ saf�ty and oro_nertv. Section 12-1507. DiJTIES OF EVALUATORS.. 1 Each evaluator shall comolv with the following: Maintain a current license with one of the reco�nized cit.ig�,. Conduct�ll evaluations within the_ nrosram's eu�elines. c Meet reauired continuin� education reauirements established bv the reco�nized, cities_ listed in Section 12-1505. 2�ch eva�tor sha11 com�l,v with the followin�,procedure for oreganT d filine �orts� The ev l� ai tion reoort shall be either t�ewri�,ten or le�iblv nrinted in ink on forms furnished bv the citv. The reoort sha.11 indicate whether the condition of the dwellin� unit meet i r uirements_ is below citu reauiremenits or is deemed t� be haz�rdous �.the time a.nd date of xhe evaluation. b The evaluator shall submit the ori�inal evalua.tion rez�ort to the seller. The, evaluator shall kee� a dunlicate cop� Section 12-1508. C�RRECTION OF INIlVIEDIATE HAZARDS-. 1. The followin� items_ when discavered bv the evaluator_ shall be identified as immediate hazards in the evalua.tion regQr�;. Heatine �vstems tha.t ars unsafs due t� burned out �r rusted hea� exchangers, burned out. rusted �r nlu��ed flues n� vent_ connecti�n with unsafe �as sunnlies or incanacitv to adenuatel„v heat the livin� s�ace. b Water heaters that are unsafe due to burned out or rusted hea.t exchan�er$_ burned out_ rusted or �olu��ed flues_ no vent_ connection with unsafe �as su���nlies or la�k of tem�rature and oressure relief va.lves. c. Electrical svstems that are unsafe due to dan�erous overloadin�_ dama.ged ar deteriorated ec�pment_ im�r ,nerlv ta or snliced wirine_ ex±�osed uninsula�gd wires_ temz�ora.rv distribution svstems_ or unarounded sustems. d Plumbine sastems that are unsanitarv due to leakima waste sUstems_ fixtures or traos_ lack of an o*�eratin� toilet lack of w�3shin� and bathin� facilities_ cross, connection of munici*�al wa.ter sunnlv with fixtures or sewa�e lines_ or the lack of water. e. Structural sustems includin� walls_ chimnevs_ ceilin�s_ roofs. foundai:ions_ floar svstems or decks which are not ca�able of cai-rvin� imoosed loads, f Exterior roofs_ walls. chimnevs and fo�inda.tions tha.t are nnt wea.ther ti�ht a.nd water ti�ht to the e�ent that it creates an immediate hazard., Abandoned storase tanks_ ORDINANCE NO. h. L�ck of o¢�,tional smoke detectors located in accorda.nce wi�the a„�.plica�l provisions of the IJniform Buildine C� 2 No occuoancv shall be nermit� of anv dwellin,� unit if vacant and an immedi�g h z r exits. If the dwelling unit is occu�ied an�,�n immedi�te h� exi�, corrective a�tion sha.11 be t�ken bv the owner or a�nt of the owner. 3 When correctin� identified h�zards- the owner sh�ll obta.in ll necessarv permit� from the citv and the oremises shall be sublect to inspg.�rtion bv�n evaluator nrior t4 occup�ncv of the dwellin�., :y:::: ::v.:::{:!w::::n�:::: :n:::: v:::: w::::::{: v:::::: v. ..i `i. 'i`:Cti:{�:v i�.i:.i:.ii:.i:.iii:::i:L:i::ii:i:::'r:<L�':.:::y:.: :.i'i::.:!i: :•:::.i::: •v:i::: y ::.i :i a ,e._ �x# �i1�F f :t#'.'. ��:•��i'�'t'��'1$�� �'Q� LF yfl�� R u� L�{� �nt� R I i:': i�ii:.. x �::r,.:�i::�::::�.>;::�::�::�::�>••: •.a: y2� y o:�::•:•:.:�:�:•;::•>:�:. L ;F "i I#' '.ktl #'f R E�?, �'`r fYf ?�t �4� 1� r :::>r<:;:.::>::>::»::::>::>:::<::::::>::»::»::::>::>:<::;;>::>::: ���rn �:i�:iE;;'i�: ii'::iii �:iJJ33?:; ii f� ���ned a�reement from the buver accenting responsibilitv for correcxion of the h�zardc�u� items; ::<:::;::::x<:::<::::: �trabl�:: �<t� :n€� j evidence �f financial a.bilitv to �erform the corrections. The buver shall cam±�lete the correcti�n �f identified immsdiate hazards bv the snecified comnletion date. ct-i�rnn�i L ---L: �G LGL L11J Ci �i11C� .1 11 �TTCT�'i r �L y_=_ 11 Lllc ::u•��' �v_—'.es...� �i l 1 1 .1_ AA y i i r f. 1 •1• _1 j aT �.U1I1LV 4v Ll�. 1 ORDINANCE NO. i Section 12-1509. FAILLTRE TO COMPLY., 1 The failure of a.nv owner_ a�ent of an owner or buuer to comolv with the nrovisions, of Sections 12-1501 throush 12-1512 or to comnlv with an order issued bu the citv �rsua.nt to this rg�ie_ sha.11 be a. misdemea.n�r. 2 The failure of a.nv evaluator to comolv with the nr�visions of Section 12-1505 sha.11 be a misdemea.nor an m v result in de-certification bv_the citv 3 The city may also enf�rce orovisions of Sections 12-1501 throu�h 12-1512 bv m n m_ iniunction_ or other �nnr� riate remedv in court of com�e�ten_t iurisdiction. ,�ection 12-1510, WARRANTY LIMITATInN� 1 N hine in the ev�.luafion renort shall indica�te or shall be deemed to ind�te tha� dwellin� unit meets all minimum m�.'m_tenance. housin�.nd building standards. 2 Evaluations conducted nursuant to Sections 1501 throuah 1512 a.re made in order to imnrove the overa.11 housin� stock in the citU and are not mea.nt to be a warra.ntv or �uarantee �f the dwelline unit evalua_ted. The re�rt issued bv the eval►�tor is not renresentation to anu individual buver_ seller or renter re��rdin� the condition of the buildin� nor is the reoort intended for the snecial benefit of anu individual. 3 The Ciiv of Brooklvn Center shall not incur liabilitv to a buver or a.nv other nerson bv reason of AerFormance or non-performance of the *�rovisions of Sect�ons 12-1501, throu�h 12-1512. �t� ::::...............:::::::::::::::::::.n...�.......n...::::::::::::n w::...:: :.�:::..i::::.... :v n:. :....:::::::::::::::n........... ..v..::::: :.::::.x.. .v::::. v :::::::.4::.:.... �::..:v. li�::.P. 8���' n ;..;8.. u� ..:v;rxrei ;:i R J c:o::;:::i:::�:::::::::.�.: �::::o: h �k a±� �c�3' S t�IE£'� ;:.:;:;::>:<:>::>s::>::>:>::>:>:::.;:;�;>;:.;;:.;:..: ::r :_�B� n��h�:�t� .:::::::::::::::::::::::..�f �f�!!�... e� �ns���� �`�d���:::� f� e a� :::>:��€c� �a�� c� �n� >a_;::::>;::;:>::::>�<::;>::>:<;::>::>><:>::':::>;>€<:>:::<:<::::»<::<:>;::>:>;<:_;>:;�::::::::;:�<:;;�;>:::::::><:;;:;>::>:<;;;::>:::::::<..:::»::>::::»::>:<::<:::>.>: `::`::>�;€a rr ..:::::::::::n..::....::::.i}i :.iii:i:}:Fi.iii:: iii:iTiii:}i}i:ii:::::.�nTiiiii:4ii: }iii:: ::::vi:.::i:.i: Yy. ..:titi v ::::::::::::::.i'.iiiii:'i:iiiii:::: ::w:.�:::.v.ii'r'.iiii?:4iiiii::::: .�::::::::.::iiiY'.iiiii .ii::::::::::::niiiN?iiiii}:::: .::i:. .:J:'". :n'.. v �yy ::::::�:i: :.i::iii'1:::::::. :y.�: r::i:...ii: .iii' :iL. .ii: :i:i' '::i: i21�:::::'�� :...:......:.....:v...:...w..... w: .....�i �..::#I .,9:. I.' ..r��..,,::�...............�.......:.....::::::::::::.:...... ::::::::::::.�.�:.�:::::::..::::::::.�:::::::.�::::::::::::.i.::::::::::::::::::::::::::::::.�{�iiiiiiiii.W.::�:::{v.:yii::i:i.iii:}i'ii:i:':iii:i:?::.. :::�:i}i:: vi: iii::iiiiii::.: i': v..i.:v.: i<b ii:�ii:Jiiiiiiiiii:'}iiii:•:4:ii:i{;Ti:•:'ii:{•i:'iii:iiiiiiii:�i:i::: �i}:.::iv: •iiiiiiiiiiii: :}i: .�:::i:: :i. '.iv.;•::::vi•.•••: i i: i .r: :'1'L*� '��CF'�' :i.i?iiiiiiiii:iJ::i}iiY•�:v.::.�::::::::n:�:: .•.......v f. ����i ti �l�•;: r .�i��:� .�E �1 .—r, :»i�IL r Section 12-1512. APPEAL. A nerson a��rieved b� a decision_ notification or �rder under this ordinance m�v anneal such decision_ notification or �rder to the council which mav reverse_ modifv or affirm the same after a hearin� uoon notice to the a��ellant. The a�,�ea.l must (il be in writin�_ (ii),�,necifv the decision. natification or order anpealed form /rii�snecifv with oarticularitU the basis and �rounds of the a�neal. ORDINANCE NO. i and (ivl be filed with the clerk on or before 20 d.avs followin� the date of the decision_ notifica.tion or order. Section 12-1513. EFFECTIVE DATE. �ections 12-1501 throu�h 12-1512 sha.11 be effective for dwellin� units conveved on or after Januarv 1 1999. Section 2. This ordinance shall be effective after adoption and thirty days following its legal publication. Adopted this day of 1998 Mayor ATTEST: City Clerk Date of Publication Effective Date (Brackets indicate matter to be deleted, underline indicates new matter.) C,, cdk�v�. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Lasman. Motion passed unanimously. PUBLIC HEARINGS r ti 7a, AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIME OF SALE HOUSING INSPECTION, REQUIRING AN INSPECTION, DISCLOSURE OF CONSUMER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SALE AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS Mr. McCauley outlined the history of the ordinance that was proposed by the Housing Commission. He noted changes in the Ordinance that were made at Council direction which would cause immediate hazards to be reported to the City, regardless of whether a sale occurred. A second alternate was included in the Council packet that would better reflect the Council's request that the Ordinance allow more readily for buyers and sellers to enter into agreement that the buyer would correct hazardous conditions. The second alternate removed the requirement that the City consent to such agreements between buyers and sellers. Mr. McCauley introduced Building Official Dave Fisher to present a slide show of common items found in residential inspections. Mr. Fisher showed the slide presentation while discussing some of the safety hazards. He also explained to the Council some of the comment and below standard items. A motion was made by Councilmember Hilstrom and seconded by Councilmember Carmody to open the Public Hearing. Motion passed unanimously. Donna Zieska, 5455 Brooklyn Boulevazd, appeared before the Council to address her concerns about the Ordinance. Ms. Zieska stated that she is not against the inspections, but is against the Ordinance. She thought Brooklyn Center residents should be more aware of this Ordinance, and that buyers do need to be protected, but also need to be responsible when purchasing a home. She feels that this Ordinance is against her Right of Privacy. Bill Gerst from the Minneapolis Area Realtors Association (MARA) also appeared before the Council to address two things, one being the change in the MARA's position as a result of the proposed change in Minneapolis' Ordinance, and two, the fact that buyers aze having their own inspections. 6/22/98 -5- Mr. Gerst explained that the MAR.A's position has changed because of the fact that more and more buyers are hiring independent inspectors, and that the inspections are far more thorough. Mr. Gerst did not have statistical information yet as the percenta.ge of buyer inspections for the Council and assured the Council that he will check into this further and report back to the Council. A motion by Councilmember Hilstrom and seconded by Councilmember Carmody to close the Public Hearing at 7:55 p.m. Motion passed unanimously. Discussion continued and Councilmember Peppe expressed that he was not comfortable with passing this Ordinance and that this item should be tabled. Mayor Kragness suggested that it be tablad until the statistical information from the Minneapolis Area Realtors Association is received and brought back to the Housing Commission. Once the Housing Commission has the information they will report back to the Council. Councilmember Hilstrom requested information on the rights that buyers currently have for correcting problems after purchasing a house. A motion by Councilmember Lasman to refer this Ordinance back to the Housing Commission and report back to the Council when statistical information is available, seconded by Councilmember Peppe. Councilmember Carmody stated that she felt the Council had had ample opportunity to have their concerns addressed and should not wait any longer to decide this matter. Upon vote being taken on the foregoing motion, the following voted in favor thereof: Myrna Kragness, Debra Hilstrom, Kay Lasman, and Robert Peppe; and the following voted against: Kathleen Carmody. The motion passed. 7b, AN ORDINANCE AMENDING CHAPTER 23 OF T�IE BROOKLYN CENTER CODE OF ORDINANCES, RELATING TO THE REGULATION OF PAWNSHOPS AND SECONDHAND GOODS DEALERS A motion by Councilmember Hilstrom and seconded by Councilmember Carmody to open the Public Hearing. Motion passed unanimously. Attorney Tom Johnson from Gray, Plant, and Mooty representing Grow Biz International (GBI) addressed the Council. Mr. Johnson expressed that GBI had concerns regazding the proposed changes because the changes will burden the secondhand dealers, and will not be effective in reaching law enforcement goals. Mr. Johnson discussed the different types of businesses such as Play It Again Sports, and Once Upon A Child. He brought to the Council's attention that these types of business' sales will be affected if the Ordinance is changed. He reported that a number of items brought to secondhand stores had a minimal amount of items that were reported as stolen property. 6/22/98 -6- �it/✓�,, y l Mayor Kragness recommended confirmation of her appointment of Councilmembers Carmody and Lasman, Financial Commission Members Escher, Hruska, Blamey, and herself. A motion by Councilmember Carmody, seconded by Councilmember Lasman to approve the review panel of Mayor Kragness, Councilmember Carmody, Councilmember Lasman, Financial Commission Chair ponn Escher, Financial Commission Member Hruska, and Financial Commission Member Blamey to review Financial Advisory Services firm proposals. Motion passed unanimously. 8k. APPOINTMENT OF ATTORNEY FOR SPECIAL PERSONNEL MATTER Mr. McCauley discussed that he is requesting confirmation of retaining Bruce Peterson of the Hinshaw and Culbertson Law Firm. Mr. Peterson would serve as legal counsel to review the transcript and coordinate investigation of the matters identified in the transcript with the John Bazlow matter. Mr. McCauley discussed the reasoning for an outside counsel would be that the City's Attorney also represents Brooklyn Park and that the City will be seeking information that has not been released to the City of Brooklyn Park regarding other complaints. A motion by Councilmember Carmody, seconded by Councilmember Lasman to approve Mr. Peterson. otion passed unanimously. DISCU5SION ON JUNE 22,1998 NIINUTES At the June 22, 1998 Council meeting, item 7a on the agenda regazding the Ordinance of Implementing a Time of Sale was discussed. Councilmember Carmody stated that she felt the third paragraph on page six of the June 22, 1998 minutes needed to be changed to indicate that the item was tabled until the Minneapolis Area Realtors Association had gotten statistical information to the Housing Commission and that once this information was received the Housing Commission could review the information to see if it affects the decision they have made. The Council then discussed further some of the issues that were previously discussed and wanted to make sure the Housing Commission specifies what will happen if residents have an inspection and do not sell their homes. Councilmember Hilstrom stated that Councilmember Lasman summarized the items to be hazardous at the previous meeting on June 22, 1998. Councilmember Carmody thought those should be noted so that the Housing Commission is aware of them and that they should be included with the minutes, or this discussion. Councilmember Lasman stated that the language needs to be redefined to clarify what will happen after an inspection is done. Councilmember Cannody questioned when this item will be brought back to the Council and suggested three months was plenty of time to make a decision one way or another. Councilmember Hilstrom questioned when the Housing Commission meets to make sure that time would be appropriate. Staff advised the Housing Commission was meeting during the summer months. It was the consensus of the Council that this item be brought back to the Council after three Housing 7/13/98 -14- DRAFT Commission meetings and that a decision is made at that time. Councilmember Lasman questioned if the Minneapolis Area Realtors Association would be notified of the time given. Mr. McCauley responded that if a motion is made, the City would communicate to the Minneapolis Area Realtors Association. A motion by Councilmember Lasman, seconded by Peppe to table the minutes of June 22, 1998 until July 27, 1998, and that the Council make a decision on this item after three Housing Commission meetings. Motion passed unanimously. 9. ADJOURNMENT A motion by Councilmember Hilstrom, seconded by Councilmember Lasman to adj ourn the meeting at 8:02 p.m. Motion passed unanimously. ��JU City Clerk ayor 7/13/98 -15- DRAFT MINUTES OF THE PROCEEDINGS OF THE HOUSING COMNIISSION OF 1'HE CITY OF BROOKLYN CENTER IN TI� COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION AUGUST 18, 1998 CONFERENCE ROOM B BROOKLYN CENTER CTTY HALL CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Robert Torres at 7:00 p.m. ROLL CALL Chairperson Robert Torres, Commissioners Lloyd Deuel, Ernie Erickson, Michael VonDeLinde, and Mazk Yelich. Also present were Council Liaison Bob Peppe and Community Development Specialist Tom Bublitz. Commissioner ponald Arm was absent and excused from the meeting. Also absent from the meeting were Commissioners James Lano and Christopher Russell. APPROVAL OF AGENDA There was a motion by Commissioner Deuel and seconded by Commissioner Erickson to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES July 21, 1998 The Community Development Specialist noted he had not yet prepared the July Housing Commission minutes. There was a motion by Commissioner Yelich and seconded. by Commissioner Erickson to defer approval of the July Housing Commission minutes until the next meeting. The motion passed. TIME OF SALE ORDINANCE Commissioner Erickson inquired as to the various concerns the Council had with regard to the proposed Time of Sale Ordinance. Council Liaison Bob Peppe responded by. explaining that one of the Council's concerns addresses an issue where someone may be found in violation of the Time of Sale Ordinance and may not be able to afford the repairs. He explained further that even if the house does not sell the ordinance would require that the owners be held liable under the current ordinance as proposed. Commissioner Yelich inquired whether or not a situation such as a faulty furnace that is not repaired, but is noted in the inspection report, would entail some liability for the City if there is a death or injury related to the furnace. Council Liaison Peppe indicated that he believe there -1- 8-18-98 could be some liability in a situation like this. I The Community Development specialist noted that one of the issues examined early on in the discussion of the Time of Sale Ordinance was the public duty doctrine and he explained that there are various criteria tha.t must be met under this doctrine to assure that cities are not held liable under ordinances of this nature. Council Liaison Peppe questioned how the City can tie repairs of the house into the ordinance even if the house is not sold. Commissioner Erickson pointed out that the ordinance would reflect the codes in effect when the house was built with the exception of a few items that aze new such as smoke detectors. He added that he does not think the ordinance should waive corrections of items in cases where hazardous items are found as per the appropriate code at the time the home was built. He added that he thinks elderly individuals are likely to have equity in their homes and there may be some creative ways to accomplish corrections from a financial standpoint. He added that he does not think life safety issues can be ignored. Council Liaison Peppe commented that he believes some people will still not be able to afford to fix various items if the house goes off the mazket. He cited a possible scenario where an elderly person may be taken to court over the correction of items they are unable to correct because they cannot afford it. Commissioner Erickson stated he does not think the scenario is a valid one and stated that he believes there is often equity in a home that has been owned for a significant period of time. He added that there may be charitable or volunteer organizations available to help out in addition to other community resources. Council Liaison Peppe suggested that the ordinance should be a situation where a private evaluator does an inspection, repairs are made only if the house sells otherwise the City is not involved. He also expressed a concem that the 90 day follow up period in the ordinance will be missed.. Commissioner Yelich brought up a scenario where hazardous items are noted in a report, the City is made aware of the hazardous items and if nothing is done and a death or injury results is there not potential liability for the City? Commissioner Erickson noted that there may aLso a problem with the evaluators performing an inspection where they perform an inspection knowing that their requirement for repair of a hazardous item will be forgiven. Council Liaison Peppe added that an example where there is one permit item to be corrected and three non-pernut items how does the City assure that there is no liability from the non-permit items. 8-18-98 -2- Commissioner Erickson requested the Community Development Specialist to get an opinion from an evaluator on the liability issues raised. Commission members continued to discuss the liability issues with regard to the Time of Sale Ordinance. Council Liaison Peppe noted that if the ordinance is tied to the closing of the house then it may become more of a realtor responsibility. In a situation such as this the realtor's license is at risk. He noted that the City would not necessarily know about the inspection report if there are not permits required. He suggested that there should be no liability for the City in this situation. Council Liaison Peppe expressed a concern that the ordinance as proposed is creating a situation where government is imposing itself on residents and in effect is a situation of too much government. Various commission members responded to Council Liaison comments and expressed their opinion that the ordinance is necessary and that it woutd be a positive step for the housing stock in the City. Council Liaison Peppe left the meeting at 8:10 p.m. The Housing Commission continued its discussion of the council directive as contained in Council minutes with regard to the Time of Sale Ordinance. Commissioner Erickson stated that the City Council is requesting� an answer by September. He noted that he would attempt to contact the four remaining Council members with regard to clarifying their positions on the ordinance. There was a general consensus of commission members to meet in September and to conclude its consideration of the Time of Sale ordinance with regard to the Council directives. ITINERA.RY FOR BUS TOUR The Commission briefly discussed the fall bus tour and concluded that because of the discussion and council directive regarding Time of Sale they would postpone the bus tout until early spring. There was a motion by Commissioner Erickson and seconded by Commissioner Deuel to table the Housing Commission's bus tour until early spring 1999. The motion passed. OTHER BUSIIVESS Commissioner Yelich inquired why the City was rezoning an area in the 53rd Avenue area from R4 to R2. The Community Development Specialist noted that the R4 zoning is in the Bellvue Lane subdivision where the new single family homes are being built and that it consisted of a two lot R4 zone where the apartments occupying the R4 zone were demolished as part of the 53rd -3- 8-18-98 Avenue Development and Linkage project. He noted the surrounding area is R2 and the rezoning is to bring the property into compliance with the surrounding zoning. Commissioner Deuel requested that the issue of assisted living and health issues with regard to housing be addressed at some future Housing Commission meeting. ADJOURNMENT There was a motion by Commissioner Erickson and seconded by Commissioner Deuel to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:47 p.m. Chairperson 8-18-98 -4- MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION OCTOBER 20, 1998 CONFERENCE ROOM B BROOKLYN CENTER CITY HALL CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Robert Torres at 7:00 p.m. ROLL CALL Chairperson Robert Tqrres, Commissioners James Lano, Lloyd Deuel, Emie Erickson, Michael VonDeLinde, Mark Yelich, and Donald Arm. Also present were Council Liaison Bob Peppe, Mayor Myrna Kragness and Community Development Specialist Tom Bublitz. Commissioner Christopher Russell was absent from the meeting. APPROVAL OF AGENDA There was a motion by Commissioner Erickson and seconded by Commissioner Arm to approve the agenda as submitted., The motion passed. APPROVAL OF MINUTES July 21, 1998 and August I8, 1998 There was a motion by Commissioner Erickson and seconded by Commissioner Arm to approve the minutes of the J'uly 21, 1998 and August 18, 1998 Housing Commission meeting as submitted. The motion passed. TIME OF SALE ORDINANCE Commissioner Erickson stated that, as he committed to at the last meeting, he followed up with Council members to determine their positions on the Time of Sale ordinance. He then proceeded to review his discussions with Council members. Commissioner Erickson stated he discussed the Time of Sale ordinance with Councilmember Lasman and she indicated that she believes it is a good concept but needs some fine tuning so no one is in danger of being convicted of a misdemeanor if they are unable to correct certain hazardous items. She noted that there may need to be a redefinition of hazards and cited the example of smoke detectors being required in every bedroom and that this may not be necessary if there is only a single person living in the house. She added that some hazards aze less hazardous than others. 10-20-98 -1- Commissioner Erickson relayed his conversation with Councilmember Hilstrom who indicated that if significant costs will be necessary to fund the administration of the Time of Sale ordinance there would need to be a budget cut somewhere else in the budget. He added that in his conversation with Councilmember Hilstrom she indicated she had received comments from residents about code enforcement officers looking in people's backyards and that this was a concern for some individuals. Commissioner Erickson commented he believes if code enforcement officers see a good appearing house from the front there will likely not be a reason to enter the backyard but if there is a troublesome appearance in the front yard there may be reason to investigate in the backyard of residences. Councilmember Bob Peppe arrived at 7:10 p.m. Commissioner Erickson stated, in discussing the Time of Sale ord.inance with Councilmember Carmody, she supports the point of sale ordinance in its present form and suggested the Housing Commission members should attend the City Council meeting where the Time of Sale ordinance will be considered. Mayor Kragness stated she is supportive of the concept of upgrading the housing stock but questioned whether the City might be mandating something they do not need. She stated that she would like the realtors association to present their information on buyer inspections. Chairperson Robert Tones recognized Mr. Bill Gerst representing the Minneapolis Area Association of Realtors. Mr. Gerst stated that when the City of Minneapolis was conducting hearings on their Time of Sale ordinance many real estate agents in Minneapolis testified that there were a growing number of buyer inspections. During the Minneapolis hearing process, there were no hard data available to prove that buyer inspections were on the increase. Mr. Gerst indicated he has attempted to get objecdve data from realtors and agencies regarding their experience with buyer inspections. He added that in his survey he asked individual agents to respond on their own sales and also requested an agency response with regard to overall buyer inspections in a particular agency. He explained his response was received in the form of percentages of sales that included a buyer inspection. He added that he had information on percentages of inspections done in offices and also from agents. He explained this survey included data from January 1, 1997 through June 1998. He further explained that informadon was given in the form of percentages of inspections as opposed to the total number of sales for proprietary reasons. He added that a growing number of offices and agents have recorded a significant increase in buyer inspections over the last two to three years. Mr. Gerst presented his report summary to the Housing Commission which indicated a significant number of buyer inspections being done from both individual agents and from agencies. Corrunissioner Arm inquired whether cities that have Time of Sale ordinances allow for a waiver of ordinance requirements if the buyer does an inspection. Commissioner Erickson commented that if a buyer does the inspection it is unlikely that they would share it with anyone else and tha.t the ordinance requires that an inspection be done at the time the house goes on the mazket. 10-20-98 _2_ Commissioner Erickson commented that this past real estate season in Brooklyn Center, and other cities, has been very hot and that offers are often made above the asking price and two to three offers may be made on a single. home. He inquired of Mr. Gerst, if there is a situation where two families put in a bid at the same price and one is contingent on a buyer having an inspection done and the other is non-contingent which is likely to be accepted. Mr. Gerst responded that, everything else being equal, the seller would certainly take the offer without the contingency. Mayor Kragness stated she had sold her mothers' home in Brooklyn Park recently and bought a policy to cover appliances functioning after the sale. She asked Mr. Gerst how often this is used. Mr. Gerst stated that this is a fairly new program and that Edina Realty has been the main agency offering this program. Commissioner Erickson referred Commission members to the memorandum from the City Attorney and pointed out that the rriemo addressed some important points and noted that a secondary goal of Time of Sale inspection programs is to provide good turnover housing to first time buyers. He commented that realtors use a disclosure statement signed by the seller but this is not required by law and that additional arbitration is being,used in certain transactions and that binding arbitration is a way of dealing with house problems. Commissioner Arm commented that some items in a home are obvious, such as outlets needing ground fault interrupters and rooms needing smoke detectors, but he stated he believes the average homeowner does not have any idea that they may have a cracked heat exchanger, for example. Commissioner Erickson inquired of Commissioner members whether or not there are certain items im Section 12-1508 of the ordinance that could be eliminated as hazardous items. Commissioner Arm stated that he does not see anything that the Commission could eliminate in the list of hazardous items in the current proposed ordinance. Mayor Kragness commented that paragraph number 4 in section 12-1508, regarding an agreement that the buyer may execute to provide that they correct hazardous items, was extensively discussed by the City Council. Chairperson Tones recognized Ms. Donna Zieska, a resident present in the audience. Ms. Zieska commented that the insurance Mayor Kragness referred to earlier, for appliances, is quite expensive and that sometimes it is a situation where someone new buying a home uses the house, including the appliances, in a different manner causing problems to occur. She stated she believes insurance that would last a year is not a good idea since the new buyers could abuse the appliances during that year. She also commented she is wrestling with the cost of an inspection which would be appro�cimately $300. Commissioner Erickson pointed out that a$300 inspection would be one that would be initiated i 10-20-98 -3- by the buyer and that a Time of Sale ordinance, under the requirements of the proposed ordinance, would not be that expensive. Commissioner Lano commented that he had a buyers inspection done on a house he bought in Brooklyn Center and the inspection took approximately four hours and cost $250. Ms. Zieska stated that if the City has required inspections the costs for such an inspection should be a minimum. She added that if residents have to get their properties up to code before they sell it this is going to be a great burden and problem. She added that many people buy older homes with known problems and then fix them up. She suggested that there be some tax break for repairs required under a Time of Sale ordinance. She added that this would be an incentive for a buyer and that the incentive program would be better than sellers giving a quick fix to home repairs under a Time of Sale ordinance. Commissioner Erickson commented that he does not think the City could implement a program of tax breaks at the local level. Commission members discussed the issue of administrative time required to administer a Time of Sale ordinance. The Community Development Specialist noted that this year has been a particularly busy year for t�e inspection staff and that next year, with the approach of the Brookdale remodeling, will be an equally if not busier year. He stated that there is a concem that the inspection staff may be stretched with a Time of Sale ordinance. Mr. Bill Gerst stated that if the City believes they will not have enough staff to admuuster a� Time of Sale Ordinance he thinks that his report shows an increasing reliance on private inspections from buyers. He also states he believes the real estate market has gone beyond the need for cities to enact ordinances such as Time o� Sale type ordinances. Mr. Gerst stated that if the City does pass a Time of Sale ordinance he would request that two areas in the ordinance be clarified. Number one, he stated that he does not understand section 12-1511 IMMED ATE A7 R1�S and specifically paragraph B of this section. He stated that this entire section, and particularly paragraph B, needs to be clarified. Number two, he stated that it is unclear in the ordinance whether the seller will have to make repairs within 90 days if the house does not sell. He emphasized this is not clear in the ordinance as proposed. Mayor Kragness inquired whether buyer inspections are still increasing. Mr. Gerst replied that his data shows that they are increasing and that the FHA is now recommending private inspections be done on FHA insured homes. Commissioner Lano stated he has bought two homes in Brooklyn Center and both of the homes had buyer inspections done on them. He stated he believes the Ciry is going halfway in proposing this Time of Sale ordinance and does not think the City can have it both ways. He added he believes that there needs to be staff involvement in such an ordinance to make it 10-20-98 -4- successful. Also, he noted Mr. Bublitz had previously stated that none of the cities that have Time of Sale ordinances can show objective proof that these ordinances have improved the city's overall housing stock. Mayor Kragness inquired whether the Ciry may be mandating something that is already being done by the real estate industry. Commissioner Yelich pointed out that the Commission should be aware of the purpose of the ordinance which is to maintain the overall housing stock in the City and not to protect buyers or sellers. He pointed out that this has been lost in many of the discussions of the Commission. The Community Development Specialist inquired of Mr. Gerst whether an ordinance requiring realtors to provide information on private inspections would be beneficial. Mr. Gerst replied that he did not think an ordinance like this would be workable and cited the example of the Department of Health requiring that realtors distribute brochures on well abandonment. He noted that this particulaz approach was not terribly successful. Commissioner Deuel stated that he doesn't know what the typical Brooklyn Center house and that he believes people are buying' homes and not fixing them up properly. He .stated he believes the Time of Sale ordinance is a start and that he thinks the percentages of buyer inspections would go up if the ordinance is implemented. Commissioner Lano stated that he believes the number of buyer inspections may go down if an ordinance like this is implemented since buyers would assume that the inspection is already being done by the City. Council Liaison Peppe stated he would like to address the current infrastructure improvements that are underway in Brooklyn Center and the subsequent increase in property values related to the cunent street replacement program. He explained these projects are helping to encourage homeowners to improve their properties. He added that he has looked at the yards of people with new curb and and has noted additional exterior improvements to the homes in many cases. Council Liaison Peppe continued and noted that there are many unanswered questions regarding a Time of Sale ordinance and that his main concem is upgrading the housing stock and that this may be accomplished by proxy by improving infrastructure. Commissioner Erickson stated it was his understanding that the City's street replacement program does not reach beyond a five year plan for specific areas and that the overall replacement program would take 25 years. Council Liaison Peppe commented that the street replacement program is a multi-year program but that a significant amount has already been done and as the City gets to the Brookdale improvements and other areas there will be a positive change in the community. 10-20-98 -5- Mayor Kragness commented that the schedule for street replacement is somewhat based on the condition of sewers in a particular area and that this is a critical point with regard to scheduling the improvements. Chairperson Torres commented that he had his streets done two years ago at an assessment of $2,500. He pointed out that this assessment cost may take away from housing improvements in some situations. Ms. Donna Zieska stated that she sees some good points and bad points of a Time of Sale ordinance but the overriding bad point is government control. She stated she agrees that hazardous things should be corrected but with the help of real estate people not the government. Chairperson Torres stated that it was his understanding Councilmember Hilstrom's concem is the issue of addressing the correction of hazardous items if a house does not sell. He also noted that one of Councilmember Lasman's concerns is to clarify the language in the ordinance as to what happens after the inspection is done by the initial evaluator. Commissioner Erickson stated that the ordinance before the Commission this evening is the alternative language ordinance which addresses the agreement between seller and buyer to correct the items and he referred Commission members to section 1508 paragraph 4 which allows the buyer to enter into an agreement with the seller to correct hazardous items. Commissioner Arm questioned whether there should be a time limit on correction of hazardous items by the buyer. Commissioner Erickson responded that the ordinance now says that correction of hazardous items shall be completed with reasonable completion dates no more than 90 days. He added that one thing the ordinance does not have is a subheading on the situation where corrections are required even if the house does not sell. Commissioner Arm stated that the 90 day period addresses corrections done by the buyer but it is not clear on the time limit for corrections to be done by the seller if the house does not sell. Chairperson Torres suggested that language be added to the ordinance which would require the seller to correct the hazardous items within 90 days from the date the items are identified or show some proof of intention to correct the items. Mayor Kragness commented that 90 days may not give enough time for some individuals to obtain financing to do corrections if that is needed. Commissioner Erickson suggested that Chairperson Torres' language be included in the ordinance but that the time period be extended to 180 days. Mr. Bill Gerst of the Minneapolis Area Associadon of Realtors stated that the Minneapolis ordinance requires that the buyer or seller must complete the hazardous item correction within 10-20-98 90 days from the date of the disclosure report and that this 90 day period covers corrections done by the seller if the house sells or not and also corrections done by a buyer if the correction is deferred to the buyer. There was a motion by Comnussioner Deuel and seconded by Commissioner Erickson to amend the proposed alternate Time of Sale ordinance to include the language from the Minneapolis Truth in Housing oridnance which states that "all required repair/replace items must be completed by the buyer or seller within 90 days of the date of the disclosure report whether or not the property is sold, unless otherwise excepted by this chapter" and to direct staff to clarify section 12-1511 of the proposed Time of Sale ordinance. The motion passed. Commissioner Erickson stated that the City Council has directed the Housing Commission to return with a decision within three meetings and he added that he believes the Commission has met that goal. There was a motion by Commission Erickson and seconded by Commissioner Arm to forward the ordinance to the City Council as amended by the Commission's previous motion. Voting in favor: Chairperson Torres, Commissioners Deuel, Erickson, VonDeLinde and Arm. Voting against: Commissioners Lano and Yelich. The motion passed. A.DJOURNMENT There was a motion by Commissioner Yelich and seconded by Commissioner Arm to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 9:30 p.m. Chairperson 10-20-98 -7- 1� s �t�r e�Z /✓et�,rrl a�z 23, MEMORA NDUM C� C•k.v�, l TO: Michael J: McCauley, Ciry Manager FROM: Tom Bublitz, Communiry Development Speciali DATE: November 18, 1998 SUBJECT: An Ordinance Amending Chapter 12 of the City Ordinances Implementing a Time of Sa1e Housing Inspection, Requiring an Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Correction of Certain Hazardous Conditions In a motion made at the June 22, 1998 Ciry Council meeting and clarified at the July 13, City Council meeting, the Council voted to send the proposed Time of Sale ordinance back to the Housing Commission and allow the Housing Commission three meetings to review the ordinance and data from the Minneapolis Area Association of Realtors regarding buyer inspections. After three meetings the Housing Commission was directed to report to the City Council with a recommendation. The Housing Commission met in July, August and October to address the Council's directive. The Housing Commission did not meet in September since their meeting date fell on Primary Election night. At the October 20, 1998 Housing Commission meeting, the Housing Commission reviewed the Council's concerns regarding the Time of Sale ordinance and made a fmal recommendation to the City Council regarding the ordinance. The Commission's recommendations were as follows: The Housing Commission, on a 5-2 vote passed the following motion: The Housing Commission moved to incorporate the language from the City of Minneapolis' ordinance regarding the requirement to correct hazardous items even if the house does not sell. This was done to clarify the proposed Brooklyn Center ordinance. The Minneapolis ordinance language reads "all required repair/replace items must be completed by the buyer or seller within 90 days of the date of the disclosure report whether or not the property is sold, unless otherwise excepted by this Chapter". The Housing Comrnission's motion also requested that Section 12-1511 IlVIMEDIATE. HAZARDS should be clarified particularly paragraph b in Section 12-1511 of the proposed ordinance. Staff incorporated the revisions recommended by the Housing Commission into the proposed ordinance. The ordinance, as amended per the recommendations of the Housing Commission is included with this memorandum as ALTERNATE (AIVIEN�ED). The "Altemate" ordinance was the version of the ordinance that was published. The amended version contains additions recommended by the Housing Commission at their October 20, 1998 meeting. No deletions were MEMORANDUM Michael J. McCauley Page 2 made to the original "Alternate" ordinance and the language added is shown in bold face type which sets off the added language from the original published language. The additions in the amended altemate ordinance incoiporate language from the Minneapolis Time of Sa1e ordinance in Section 12- 1508 paragraph 2 and additions clarifying Section 12-1511 are found in Section 12-1511 and Section 12-1508 paragraph 3(a) and (b). Also, 12-1508 5(b) is amended to extend the 90 day correction period when the buyer does the correction of hazardous items. MINNEAPOLIS A.REA ASSOCIATIDN OF REALTORS TIME OF SALE POLICY AND DATA ON B UYER INSPECTIONS The Housing Commission received and reviewed data from the Minneapolis Area Association of Realtors on buyer inspections. The Minneapolis Area Association of Realtors report on buyer inspections is included with this memorandum along witH their policy on Time of Sale Ordinances. ADDITIONAL BACKGROUND INFORMATION Also included with this memorandum is the October 20, 1998 Housing Commission minutes and excerpts from previous City Council minutes relative to the Council's discussion of the Tune of Sale ordinance. 1 G:�DEPTS�EDA�B UBLITZ�MEMOS\1998�MMC 1.118 ALTERNATE (ANIENDED) CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 22nd day of June, 1998, at 7 p.m. or as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Pazkway, to consider an ordinance amending Chapter 12 of the City Ordinances Implementing a Time of Sale Housing Inspection, Requiring Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Correction of Certain Hazardous Conditions. Auxiliary aids for persons with disabilities are available upon request at least 96 hours in advance. Please contact the City Clerk at 569-3300 to make arrangements. ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 12 OF THE CTTY ORDINANCES IMPLEMENTING A TIME OF SALE HOUSING INSPECTION, REQUIRING INSPECTION, DISCLOSURE OF CONSUMER INFORMATION CONCERNING I THE CONDITION OF A DWELLING PRIOR TO TTS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIl�T AS FOLLOWS: I Section l. Chapter 12 of the City Ordinances of the City of Brooklyn Center is amended by adding the following: 'I I i Section 12-I501. PURPOSE. The nuroose of this Section is to enhance the su*�nlv of safe. sanitarv and adeQUate housin� for citizens of the citv of Brooklvn Center and to orevent the deterioration of existin� housing. Section 12-1502. DEFINTTIONS. The following words and terms when used in this Section shall have the followin� meanin�s. unless the context clearlU indicates otherwise: 1. "Dwellin�" a building_ or oortion thereof. desiened or used nredominantlu for residential occunancv of a continued nature. includinQ one-familv dwellin�s. two-familv dwellin�s, and multinle familv dwellin�s: but not includin� hotels and motels. 2. "Dwellin� Unit" a sin¢le residential accommodation which is arranQed_ desi�ned, used or. if vacant. intended for use exclusivel�� as a domicile for one familv. Where a*�rivate �araee is structurallv attached. it shall be considered as nart of the buildin� in which the dwelline unit is located. 3."Mobile home" -(includes "Manufactured" Homesl. A sin�le familv detached dwelling unit desi�ned for vear-round occu*�ancv. constructed at a factoru or assemblv nlant and drawn to the site on attached under carriaQe and wheels. "Mobile H�me' shall not include, ORDINANCE NO. "RecreatiQn Vehicle" as herein defined. nor shall it include modular or prefabricated dwellinu units which meet or exceed the reouirements of the Uniform BuildinQ Code_ `Bvaluation renort" a written rex�ort nre�ared and sivned bv a �erson licensed as a. time of sale housin¢ evaluator in a communit�� reco.u. nized bv the Citv of Brooklvn Center on a form in comnliance with Section 12-1506 of tl�is Code., "Immediate hazard" a condition or defect which is likel�� to cause iniurv to a nerson or nronertv if not conected. "Issuing Authorit�r" the Cit� Mana�er or his/her desi4nated renresentative. "Owner's A¢ent" a nerson who acts for or has the *�ower or authoritv to act for the owner of a dwellin� unit. "Sale" the transfer of title or �ossession of a dwellinQ unit whether or not absolute, title is transferred. "Vacant" a dwellin� unit which is not occupied_ Section 12-1503. INSPECTION AND EVALUATION REPORT REOUIRED., 1. Excent as set forth in Section l 2-1504 of this Code. no dwellin? unit or mobile home located within the Citv ma�� be voluntarilv conveved for consideration bu deed or contract for deed until the owner ar owner's a?ent has first ao�lied for and secured an evaluation ore�ared bv an evaluator meetinQ the reouirements under Section 12-, 1505 of this Code. 2. A valid evaluation renort issued for the dwellina unit in auestion shall be orovided to the buver nrior to the axecution of a ourchase aereement. The bu��er shall be suonlied a co�v of the written re�ort and shall siQn a co�v acknowled�inff recei�t of that renort. If the structure is in com!�liance with reauirements of Section 12-1508 of this Code,, the evaluation reoort sha11 state that the structure has been ins7ected and is in conformance. An evaluation re*�ort is valid for one uear fr�m the date of its issuance., The renort is valid onlv for the�owner listed on the re��rt. 4. No nerson shall offer for sale b�� exhibitinQ or showina a dwellin� unit within the cit�i without havin� first obtained an ins*�ection and evaluation reoort as described in this Section. The evaluation re*�ort shall be conspicuouslv disolaved for insoection at the nremises at all times that such dwellin? unit is beins? offered for sale. Section 12-1504. EXCEPTIONS. The �rovisions of Section 12-1503 do not a�nlv to: ORDINANCE NO. 1. Anv newlv constructed dwellin4 unit when title is transferred to the first owner, 2. The sale or other transfer of title of anv dwellin�? unit to a*�ublic bodv. 3. The sale or transfer of title of anv dwellin� unit for the ournose of demolition., 4. The sale or conve�iance of an�� dwellina unit bv a sheriff or other �ublic or caurt officer in the oerformance of their official duties. This exemption does not aonlv to the sale of a dwellina unit bv a Derson annointed bv a nrobate court_ 5. The sale or conve��ance of anv entire multi�le familv buildinQ_ Section 12-1505. EVALUATOR REOLTIREMEN'I'S., 1. Evaluators conductin� evaluations and completing evaluation reoorts under this Code. must maintain a current unex�ired Certificate of Com�etencv issued bv the Citv of Minneaoolis. St. Paul or Bloomin�ton. The Citv Council mav_ bv resolution,, recou_nize Certificates of Com�etencv from additional cities. Evaluators must a1so, show nroof that he or she has a current unex�ired Certificate of CompetencU from at least one of the aforementioned reco?nized cities. 2. Evaluators conductin? evaluations and com�letins? evaluation reports under this Code, shall also show �roof of �eneral liabilitv insurance insurin� the evaluator with, insurance covera�es and liahilitv limits which mav be s�ecified from time to time b�� resolution of the Citv Council. The evaluator shalI maintain insurance continuouslv, in force thereafter. The citv shall be included as a named insured on the insurance, reauired herein at the ex*�ense of the evaluator. The evaluator shall furnish the citv with a certificate of insurance which meets the citv reauirements. The citv sha11 maintain a list of the names and tele���h�ne numbers of evaluators who, meet the reauirements of this section. The list sha11 be available to the public_ Section 12-1506. FORMS_ The citv shall nrenare or authorize use of forms as it deems a_�,�ronriate to constitute a disclosure under Sections 12-1501 through 12-1511. The form shall provide information concernin? Code reauirements. ma�or structural defects and immediate hazards to health. safetv and prouertv. ORDINANCE NO. Section 12-1507., DUTIES OF EVALUATORS., 1. Each evaluator shall com*�lv with the followinQ: a. Maintain a current license with one of the reco�nized cities. b. Conduct a11 evaluations within the �ro�ram's �uidelines_ c. Meet reauired continuina education rec�uirements established bv the reco?nized cities. listed in Section 12-1505., 2. Each evaluator sha11 com�lv with the followinQ nrocedure for orenarin� and filin¢ renortS: a. The evaluation re*�ort shall be either �iuewritten or leaiblv nrinted in ink on forms, furnished bu the citv. The reoort shall indicate whether the condition of the, dwellin� unit meets citv rec�uirements_ is below cin� reouirements or is deemed to, be hazardous at the time and date of the evaluation., b. The evaluator shall submit the ori?inal evaluation re*�ort to the seller. The, evaluator shall kee� a dunlicate co�v. Section 12-1508., CORRECTION OF IlVIMEDIATE HAZARDS., 1. The followina items. when discovered bv the evaluator_ shall be identified as, immediate hazards in the evaluation renort: a. Heatin� svstems that are unsafe due to burned out or rusted heat exchangers, burned out. rusted or �luu¢ed flues. no vent. connection with unsafe �as sunnlies, or incanacitv to adec�uatelv heat the livin� s�ace. b. Water heaters that are unsafe due to burned out or rusted heat exchan�ers. burned out. rusted or oluQged flues. no vent. connection with unsafe �as sunnlies or lack of temberature and *�ressure relief valves_, c. Electrical svstems that are unsafe due to dan�erous overloadin�. dama?ed or deteriorated ec!ui�ment. imnranerlv taned or svliced wirinQ. exnosed uninsulated, wires. temnorarv distribution s��stems_ or un¢rounded svstems_, d. PlumbinQ svstems that are unsanitarv due to leakin� waste sUStems. fixtures or, trans. lack of an o�eratinff toilet. lack of washin4 and bathina facilities. cross connection of munici�al water su*�Dlv with fixtures or sewa?e lines_ or the lack of water. e. Structural svstems includin? walls. chimnevs. ceilin?s. r�ofs. foundations. flaor svstems or decks which are not ca�able of cam�in� imnosed loads.. f. Exterior roofs. walls. chimnevs and foundations that are not weather ti�ht and water tiuht to the extent that it creates an immediate hazard_, Abandoned storaQe tanks. h. Lack of ooerational smoke detectors located in accordance �vith the a�onlicable nrovisions of the Uniform Buildin? Code. ORDINANCE NO. 2. No occunancv shall be r�ermitted of anu dwellinu_ unit if vacant and an immediate hazard exits. If the dwellinQ unit is occunied and an immediate hazard exists,, corrective action shall be taken b�� the owner or a�ent of the owner. All renuired renair/renlace items must be comnleted bu the buver or seller within ninet+u (90) davs of the date of the disclosure renort whether or not the nronertv is sold. unless otherwise excented bv this ordinance. j 3. When correcting identified hazards. the owner shall obtain all necessarv �ermits from, the citv and the nremises shall be sub�ect to insnection bv an evaluator orior to occunancv of the dwellin�., a. When identi�ed ha�ards. not reauirin� a nermit from the Citv. are corrected. thev shall be re-insnected bv an evaluactor. When the identified ha7ards are corrected. the evaluator shall indicate this on the, evaluation renort. b. When identified ha7ards. renuiring a ner�nit fram the Cit`u. are corrected. thev shall be insaected bu a Cit�,► Buildin� Insnectnr as nart of the nermit insnection nrocess. When the identifted ha7ards are corrected. the, insnector shall indicate this on the evaluation re�ort. 3 a. a si�ned aQreement from the buUer accentin� resnonsibilitv for conection of the hazardous items; '.P..>." s c. evidence of financial abilit�� to nerform the corrections. The buver shall com*�lete the correction of identified immediate hazards bv the snecified comoletion date. 5. If the owner is a aovernment a�encv or if an aQreement exists between the owner and, buver that the buver will correct immediate hazards as �art of a remodelin4 �raiect, the buver mav correct immediate hazards identified in the evaluator's re}�ort. A buver intendin�? to correct immediate hazards must have written consent from the Issuin� Authoritv. Such written consent ma�� be subiect to the terms and conditions, including_ a. a siQned a�reement from the buver acce*�tin� resnonsihilitv for correcti�n of the hazardous items: ORDINANCE NO. b. reasonable com*�letion dates (no more than 90 davs after buver takes possession c. evidence of financial abilitv to �erform the corrections. The buver shall complete the c�rrection of identified immediate hazards bv the s���ecified comoletion date. Section 12-1509. FAILURE TO COMPLY. 1. The failure of anv owner. a4ent of an owner or buver to complv with the r�ravisions of Sections 12-1501 throu?h 12-1512 �r to com�lv with an order issued b�� the citv nursuant to this Code. shal] be a misdemeanor., 2. The failure of an�r evaluator to complv with the nrovisions of Section 12-I505 shall, be a misdemeanor and mav result in de-certification bv the citv. 3. The citv mav also enforce �rovisions of Sections 12-1501 throu�h 12-1512 bv mandamus_ in�unction. or other a±�nronriate remedv in a court of com�etent iurisdiction. Section 12-1510., WARRANTY LIMITATIONS., 1. Nothing in the evaluation re�ort shall indicate or sha11 be deemed to indicate that a, dwellin� unit meets all minimum maintenance_ housin�� and buildinQ standards_ 2. Evaluations conducted �ursuant to Sections 1501 throu?h 1512 are made in order to, im�rove the overall housing stock in the citv and are not meant to be a warrantv or �uarantee of the dwellin� unit evaluated_ The re_�ort issued bv the evaluator is not a renresentation to anv individual buver. seller or renter re?ardin� the condition of the, buildinv nor is the re�ort intended for the s�ecial benefit of an�� individual. 3. The Citv of Brooklvn Center shall not incur liabilitv to a buver �r anv �ther �erson bv reason of nerformance or non-�erformance of the �rovisions of Sections 12-1501, throu�h 12-1512. ORDINANCE NO. Section 12-1512., APPEAL. A nerson a¢�rieved bv a decision. notification or order under this ordinance ma�i anneal such decision_ notification or order to the council which mav reverse. modifv or aff'irm the same after. a hearin� unon notice to the a�nellant. The a�neal must (i\ be in writin�?. (iil snecifv the decisian, notification or order a*�nealed form_ �iiil snecifv with x�articularitv the baSis and Qrounds of the apneal, and (ivl be filed with�the clerk on or before 20 davs followin� the date of the decision. notification, or order. Section 12-1513., EFFECTIVE DATE. Sections 12-1501 throu?h 12-1512 shall be effective for dwellin� units conveved on ar, after Januarv 1. 1999., Section 2. This ordinance shall be effective after adoption and thirty days following its legal publication. Adopted this day of 1998 Mayor ATTEST: City Clerk Date of Publication Effective Date (Brackets indicate matter to be deleted, underline indicates new matter.) Ju� �.y� 1J�1L NO.UUb r.Ul IrLJ KtHLI.UKJ HJJUL. ItL N0. Time of Sale Housing lnspection �rdinances Minneapolis Area Association of REALTORS� hou.sing exteriors, responding to individual complaints about problem properties, and setting A primary concern of the Minne- u p a revolving loan fund to assiet apolis Area Association of REAL- homeowners with city mainte- TORS� is a healthy houaing nance requirements resulting I stock Thia is especially true at a these inspections. time when the majority of haua- Homeowners would need to ing in our cities and inner ring qu y for these loans and could suburbs shows increasing si�ns of xePay them when the property is age. sold unleas the homeowner owever the Association does not continued to live in the propertq H r a s ecified time before selling fo p 'n code com- believe that requiri g i the roper y P liance at thc point of sale will p effectively assist a community in Zf a mwaicipality determines maintaining a liealthy, affordable �ere ia a need for a point of sale housing market. Point of aale inapection program, the Aesocis- inspections affect only the ama11 tion would aupport a i�ruth in perceni.age of houscs that are sold hflusing report by a certified each year (3 to 5 percent in most private inspector rather than areas). Most problem houses are code compliance. Any resolui.ion not for sale at any given time. To of repairs based on the in$pec- increase its effectiveness, a mu- �on ahould be priva�e negotia- nicipality should direct its efforte tions between buyer and seller at at the problem prapertieg, rather of sale. than only focus ori point of sale inspections. For morc information, call Bill Gerst at the Association, Thia can be accomplished by ggg_3141_ general inspection sweeps of June1998 �un �,y� 1J�1L No.vub r.uL IrL� KtHLI.UKJ HJJUL. ItL N0. Time of Saie Housing lnspection Ordinances Minneapolis Area Association of REAL.TORS� housing exteriors, responding to individual complaints about problem properties, and setting A primary concern of the Minne u p a revolving loan fund to assiat apolis Area Association of REAL- homeowners with city mainte- TORS� is a healthy houaing nance requirements resulting stock. Thia is especially true at e fr. these inspections. time when the majority of hous- Homeowners would need to a ing in our ci�ies and inner ring q i y for these loans and could suburbs shows increasing signs of repay them when the property ie age. �old unless the homeowner However, the A.ssociation does not continued to live in the property believe that requiring code com- for a specified time before selling pliance at thc point of sale will the property. effectively assist a community in If a m„nicipality determines maintaining a liealthy, affordable �ere ia a need for a point of sale housing market. Point of aale inepection program, the AeBOCia- inspections afl�ect only the small tion would support a truth in perceni,age of houscs that are sald hflusing report by a certified each year (3 to 5 percent in most private inspector rather than areas). Most problem houses are code compliance. Any resolui.ion not for sale at any given time. To of repairs based on the in$pec- increase its effectiveness, a mu- �on should be prival.e ncgatia- nicipality should di.rect ita efforts Lions between buyer and seller at at the problem propertiea, rather of sale. than only focus on point of sale inspeci.ions. For more information, call 1 Gerst at the Association, Bil Thia can be accomplished by ggg_3141. general inspection sweeps of June 1998 ,,-��,REALIUKS H55UC. ItL No. Uct 15,98 10=28 No.004 P.02 t r BUYERS HONTE 1NSPEC'1'IONS UCTOBER 1998 MINNEAPOLIS AREA ASSOC7AT10N OF REA�TORS ,4� growiag numbcr of bu�ers are hiring a private ho o�sgThis tresnd has developed over thc inspe�ction af the property as part ofthe purchase pr past threc to five years due in part to the fact that an increasing number of buyers havc real estate agents representing them in the home purchase process. Tl�e buyer's inspection provides buyers with an insPection report detailing the condition of the ptoperty. A home buyer's �nspection takes approximately 3 hours to complete and oftentimes the prospective homebuyer accompanies the inspector through the property. These buyer initiated home inspections are more tharough than anY time of sale home inspection programs mandated by city govemments. '�'he Nlinneapolis Area Association af REALTORS (MAA�) has surveyed its members to determine what percentage of buyers hire s private home inspector as part of the home buying process. T4�e survey was conducted by asking the Boazd of Directors and I.egislative/Political Committee members, publishing an article and response form in our newsletter, and asking brokers and office managers to conduct a survey in their offices. i.. 1VLA.AR did not ask members to tell us the number ot'sales involving buy�i''s inspect�ons, only the percentage of home buyers who hired a private inspector. Using pexcentages rather than total sales makes it difficult to make direct comparisons. I3owever, MAAR collected percentages rather th�n to� sales to protect the individual offi�� and ageni sales figures. The follawing charts indicate the location of the office, not the name of tbc f rm. Keep in mind that jusk hecause 8n office is ]ocated in a particular community, it does not neccssarily follow that the mayorit3� of that a�ce's saies occurred in that samc cur»ly�unity. 4�'�C� SALES BU'YER'S �NSPECTION REPORTS LOCATYON NCJI�BER OF AGENTS PERCENTAG� OF SALES 75% l. Soutt► Minncapolis 12 95-98% 2. lcdina 65 3. Plymou�th 68% 4. Eden Prairie 37 29 53% 5. Prior Lake 80-85% 6. Brooklyn Center �9 50% 7. North Minneapolis 7 45% 8. Brooklyn Center 35 97% 9. Minneapolis 71% 10. Wayzata 40 I MPLS RERLT�RS ASSOC. TEL No. Oct 15,98 10�28 No.004 P.03 w Page 2 YNDIVI.DUAL AG�.I�ITS BUYFK'S LNSPECI'LUI�I KEPflRTS AG�NT OF�'IC� LOCATION PE�tCENTAG� OF SAY.ES 100% 1. North Mi�eapolis 70% 2. St. Louis Park 75% 3. Edira 99% 4, L•'dina 90% 5. Edina 98% 6. Plymoulh 95% 7. Minneapolis 80-90% 8. Wayz,ata 67% 9. Wayzata 70% 1 p. Edina 95% l 1. Minneapolis 77% 12. Edi.na 83% 13. Roseville 60% 14. Brooklyu Centsr 100% 15. Illoomington 86% 16.I31oomington 94% 17. WaY�� 80% I 8. Way�ta 91% 19. W ayz.aia 100% 20. Wayr,�ta 67% 2l Edina l 00% 22. Minmetonka 50% 23. Maple Gcrove 8S% 24. Plymouth 140% 25. W'aY�� 100% 2G- L'dina 94% 27. Ldina 50% 28. Wayzata 90% 29. Ldina Buy ers also rely on the Seller's Property Disclosure Sfatc of bi Iher lcnowledge the residential real estate in which the seller discloses to the urcbase a recment condition of the property at thc dme it is listed and again at the time a p g is signcd- e Disclosure Statement providc ^I'he $uyer Inspection Report and the Seller's ProP rtY buyers with a significant amount of disclosure concerning thc condition of thc propertY at the dme of putchase. �r�,5 KtHL I UKJ HJJUI.. I tL IYO UCt 1� �y2i lU �Lti NO .UUU I' .U4 r G��� kY.:� b�� Page 3 re ort includes res�onses from 301 association members out of total membership (brokcrs t�►s p and salespeople) of 4,578, a 7% response rate. L3i11 Gcrst Chief Op��ting Off��cr Cr�� �a a�✓�,' Allina Receivable Services Friends of Freeway Pazk Bazncale Bill's Steak Seafood Friends of Riverdale Park Boy Scout Troop #401 Garden City Elementary Boy Scout Troop #454 Girl Scout Troop #1469 Brookdale Chrysler Plymouth Girl Scout Troop #1789 Brooklyn Center Charter Commission Kids on the Move Daycare Brooklyn Center Lions Club Looney Weavers Brooklyn Center Lioness Club Minneapolis North Hilton Staff Brooklyn Center Rotary Club Orchard Lane Elementary School Brooklyn Swim Club Palmer Lake Elementary Brooklyn United Methodist Church Pazk Recreation Commission Brookpark Dental Center Ray and Dolores Beach Bullfrogs and Butterflies Childcare Region B Campfire Boys and Girls Children's Residential Services Rise Creative Partnerships Cub Scouts Pack 299 Riverwood Neighborhood Association Cub Scouts Pack 401 Target B.C. "Good Neighbors" Cub Scouts Pack 454 Tim Olson Earle Brown Elementary Todd Paulson Family Evergreen Pazk School and PTO Willow Lane Student Council RF.SOL,UTION NO. 98- 0� Councilmember Hilstrom introduced the following resolution and moved its adoption: RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION FOR THE PUBLIC SERVICE OF ORGANIZATIONS PARTICIPATING IN BROOKLYN CENTER'S ADOPT-A- pARK, ADOPT-A-TRAIL, AND ADOPT-A-STREET PROGRAMS The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Peppe. Motion passed unanimously. g�, Al�i ORDINANCE AMENllING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIME OF SALE HOUSING INSPECTION, REQUIRING AN INSPECTION, DISCLOSURE OF CONSUMER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS Mr. McCauley discussed that the Council made a motion at its July 13, 1998, meeting to have this ordinance referred back to the Housing Commission to review the ordinance and da.ta from the Minneapolis Area Assocation of Realtors regazding buyer inspections and to then report back to the City CounciL 11/23/98 -12- On October 20, 1998, the Housing Commission reviewed the Council's concerns regarding the ordinance and made the following final recommendations: l. The Housing Commission moved to incorporate the language from the City of Minneapolis' ordinance regarding the requirement to correct hazardous items even if the house does not sell. This was done to clarify the proposed Brooklyn Center ordinance. The Minneapolis ordinance langua.ge reads "all required repair/replace items must be completed by the buyer or seller within 90 days of the date of the disclosure report whether or not the property is sold, unless otherwise excepted by this Chapter". 2. The Housing Commission's motion also requested the Section 12-1511 ��VIMEDIATE H�ZAR�, should be clarified particulary paragraph b in Section 12- 511 of the proposed ordinance. Staff incorporated the revisions and an alternate (amended) ordinance was prepared for the Council to review. No deletions were made to the original "Alternate" ordinance and the language added is shown in bold face type which sets off the added language from the original publishetl language. The additions in the amended alternate ordinance incorporate language from the Minneapolis Time of Sale Ordinance in Section 12-1508 paragraph 3(a) and (b). Also, Section 12-1508 (b) is amended to extend the 90 day correction period when the buyer does the correction of hazardous materials. The following Housing Commissioners were present Chair Robert Torres, Commissioner Ernie Erickson, Commissioner.Donald Arm, Commissioner Lloyd Deuel and Commissioner Mazk Yelich, and Chair Torres discussed he believes this is a good ordinance tt� enhance for first time buyers. Council further discussed the ordinance and the compliance issues. A question was raised about residents that have no money to fix the issues that arise when an inspection is done. Mr. McCauley discussed that a seller has 90 days and if the issues are not taken care of in the 90 day period, the seller would be in violation of the ordinance, however, the ordinance could be changed to a longer period of time. Councilmember Hilstrom suggested having an article printed in the City Watch and having the Housing Commissioners attend the January 11, 1999, Council meeting. This ordinance will be brought back to the Council on January 11, 1999. Sd. RESOLUTION AWARDING A CONTRACT FOR PROFESSIONAL SERVICES, PALMER LAKE BASIN WATER RESOURCES STUDY Mr. McCauley discussed that the 1999 Storm Drainage Utility Budget includes $30,000 to hire a consultant to study the Palmer Lake basin in great detail and prepare conceptual designs for specific improvements. 11/23/98 -13- S ��S CITY COUNCIL MEETING t JI- a' City of Brooklyn Center ,p� u 11 1999 AGENDA REVISED 7an Q� �'Y �e 1. Informal Open Forum With City Council 6:45 p.m. -provides an opportunity for the public to address the Council on items which are not on the agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to make personal attacks, to air personality grievances, to make political endorsements, or for political campaign purposes. Council Members will not enter into a dialogue with citizens. Questions from the Council will be for clarification only. Open Forum will not be used as a time for problem solving or reacting to the comments made but, rather, for hearing the citizen for informational purposes only. 2. Opening Ceremonies a. Invocation 7 p.m. NOTE: Pastor Gloria Roach-Thomas is unable to offer the invocation. b. Administer Ceremonial Oath of Office 3. Call to Order Regular Business Meeting 4. Roll Call 5. Council Report 6. Approval of Agenda and Consent Agenda -The following items are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which event the item will be removed from the consent agenda and considered at the end of Council Consideration Items. a. Approval of Minutes -Councilmembers not present at meetings will be recorded as abstaining from the vote on the minutes. 1. Truth in Taxation Budget Hearing December 7, 1998 2. Regular Session December 14, 1998 3. Special Work Session December 17, 1998 b. Licenses -Brooklyn Center Fire Department Relief Gambling Renewal License c. Application for Exempt Permit LG220 for Minneapolis Jewish Day School, Inc. to Hold an Event at the Earle Brown Heritage Center on March 7, 1999 y CITY COUNCIL AGENDA -2- January 11,1999 d. Application for Authoriza.tion for an Exemption from Lawful Gambling License (Raffle) from Proper Economic Resource Management for an Event to be Held at the Earle Brown Heritage Center on February 27, 1999 e. Award Bid From Custom Fire Apparatus, Inc., in the Amount of $203,998 for a New Salvage Truck for the Fire Department and Accept Donation of $9,000 from the Fire Relief Association f. Resolution Designating Official Newspaper g. Resolution Appointing Michael J. McCauley as Director and Jim Glasoe as Alternate Director to the Board of Directors of Hennepin Recycling Group h. Resolution Designating Depositories of City Funds i. Resolution Setting Special Assessment and Intemal Loan Interest Rates for the Year 1999 j. An Ordinance Vacating a Portion of Alley Right of Way -Motion to approve first reading or ordinance and set February 8, 1999, for public hearing and second reading. k. Resolution Declaring Commitment to the Brooklyn Center City Charter, Pledging Fair Treatment of Employees, Declaring Against Conflicts of Interest and Misuse of Positions 1. Resolution Accepting Bids, and Awarding Contracts for Construction of New West Fire Station 1998-10 and East Fire Station Remodeling 1998-11 m. Resolution Authorizing City Manager to Enter into Memoranduxn of Understanding with Local 82 of Law Enforcement Labor Services Regarding On-Call Status for Detectives 7. Recognitian of Outgoing Councilmember Resolution Expressing Recognition and Appreciation of Kathleen Carmody for Her Dedicated Public Service as Council Member •Requested Council Action: -Motion to adopt resolution. CITY COUNCIL AGENDA -3- January 11,1999 I 8. Public Hearings a. An Ordinance Vacating a Drainage and Utility Easement REGAL ROAD DEVELOPMENT SECOND ADDITION -This item was first read on December 14, 1998; published in the official newspaper on December 23, 1998; and is offered this evening for a second reading and public hearing. •Requested Council Action: -Open the public hearing. -Take public input. -Close the public hearing. -Motion to adopt ordinance. b. An Ordinance Vacating Easements for Street Purposes BROOKLYN CENTER POLICE STATION ADDITION -This item was first read on December 14, 1998; published in the official newspaper on December 23, 1998; and is offered this evening for a second reading and public hearing. •Requested Council Action: -Open the public hearing. -Take public input. -Close the public hearing. -Motion to adopt ordinance. c. An Ordinance Amending Chapter 7 of the City Ordinances Relating to Storage of Refuse Containers -This item was first read on December 14, 1998; published in the official newspaper on December 23, 1998; and is offered this evening for a second reading and public hearing. I •Requested Council Action: -Open the public hearing. -Take public input. -Close the public hearing. -Motion to adopt ordinance. d. An Ordinance Amending Chapter 3 of the City Ordinances Regarding the Minnesota State Building Code -This item was first read on December 14, 1998; published in the official newspaper on December 23, 1998; and is offered this evening for a second reading and public hearing. CITY COUNCIL AGENDA -4- January 11,1999 •Requested Council Action: -Open the public hearing. -Take public input. -Close the public hearing. -Motion to adopt ordinance. e. An Ordinance Amending Sections 25-501, 25-1003, 25-1006, 25-1010 and 25-1015 of the Brooklyn Center Code of Ordinances Relating to Right of Way Permits and Uses -This item was first read on December 14, 1998; published in the official newspaper on December 23, 1998; and is offered this evening for a second reading and public hearing. •Requested Council Action: -Open the public hearing. -Take public input. -Close the public hearing. -Motion to adopt ordinance. f. An Ordinance Amending Chapter 35 of the City Ordinances Regazding the Zoning Classification of Certain Land (5001 Drew Avenue North) -This item was first read on December 14, 1998; published in the o�cial newspaper on December 23, 1998; and is offered this evening for a second reading and public hearing. •Requested Council Action: -Open the public hearing. -Take public input. -Close the public hearing. -Motion to adopt ordinance. 9. Council Consideration Items a. An Ordinance Amending Chapter 12 of the City Ordinances Implementing a Time of Sa1e Housing Inspection, Requiring an Inspection, Disclosure of Consumer Information Concerning the Condition of a Dwelling Prior to its Sale, and Correction of Certain Hazardous Conditions •Requested Council Action: -Discussion of Housing Commission Recommendation. -Direction from City Council: I *No Action. *Introduce and set date of public hearing. CITY COUNCIL AGENDA -5- January 11,1999 b. An Ordinance Amending Chapter 23 of the City Ordinances Relating to Payment by Pawnbrokers and Secondhand Goods Dealers for Items Pledged and Location of Pawnbrokers -This item was first read on December 14,1998, tabled to January 11,1999, published in the official newspaper on December 23, 1998, and is offered this evening for first reading. •Requested Council Action: -Motion to approve first reading of ordinance and set February 8, 1999, for public hearing and second reading. c. Select Presiding Officers Mayor Pro Tem and Acting Mayor Pro Tem •Requested Council Action: -Council discuss and select presiding o�cers. d. Appointment of Council Member to Serve as City Representative 1. League of Minnesota Cities 2. North Metro Mayors Association 3. Northwest Suburbs Cable Communications Commission 4. Association of Metropolitan Municipalities •Requested Council Action: Mayor appoint Council Member to serve on each committee. e. Mayoral Appointments of Council Liaisons to City Commissions for 1999 1. Financial Commission 2. Housing Commission 3. Human Rights and Resources Commission 4. Park and Recreation Commission •Requested Council Action: -Motion to ratify Mayoral appointments. f. Resolution Expressing Recognition and Appreciation of Members Who Have Served on City Advisory Commissions •Requested Council Action: -Motion to adopt resolution. g. Mayoral Appointments to City Advisory Commissions •Requested Council Action: -Motion to ratify Mayoral appointments to City Advisory Commissions. y CITY COUNCIL AGENDA -6- January 11,1999 i h. Staxus Report on Brooklyn Boulevard Roadway and Enhancement Projects •Requested Council Action: -City Manager will provide report. i. Resolution Calling for a Public Hearing Regarding on the Creation of Tax Increment Financing (Soils Condition) District and the Adoption of a Tax Increment Financing Plan Therefor •Requested Council Action: -Motion to adopt resolution. 10. Adjournment Office of the City Manager Cit o Brooklyn Center y f A gre¢t place to start. A great pla.ce to stay. Michael J. McCauley City t1�Ianager MEMOR.ANDUM TO: Mayor Kragness, Councilmembers Hilst m, Las Nelso and Peppe FROM: Michael J. McCauley, City Manag DATE: January 7, 1999 SUBJECT: Time of Sale Ordinance Attached are numerous items relative to the Time of Sale Ordinance discussion. Included in the materials: 1. Ordinance as sent by Housing Commission 2. Recent information from the Minneapolis Area Association of Realtors regarding inspections and trends A question and answer sheet on the proposed ordinance as updated by Tom Bublitz 4. November 18, 1998, memorandum from Tom Bublitz including the Realtor survey and other materials when the ordinance was refened from the Housing Commission and June 18, 1998, memorandum from Tom Bublitz 5. Letters received regarding the ordinance To summarize information previously assembled from several memoranda, City staff does not have, other than a rou�h estimate, the potential impact on staff time of the proposed ordinance. In Mr. Bublitz' memorandum of June 18th, there is an estimation that somewhere bet�veen 14% to 24% of a full-time building inspection position could be impacted with revenues offsetting less than one-half of the inspection time. Additionally, there would be administrative time that would be involved. Inspection staff have also identified policy issues with respect to prosecution of persons on reinspections of homes not sold and dealing �vith persons who may not be aware of the ordinance. The policy issue would relate to whether or not the goal of improving the housing stock in Brooklyn Center and protecting inexperienced buyers will be served by the proposed ordinance and whether other market- driven forces are not approaching the point where the market place itself will address these issues. As indicated in the materials supplied by the Realtors Association, the use of private inspections at the buyer's behest has increased dramatically. In some real estate offices, the use of comprehensive private inspections prior to purchase has approached 100%. As indicated in the materials relating to Brooklyn Center, while there is variation, there is a substantial use of private inspections in real estate transactions. It is my feeling 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430-2199 City Hall TDD Number (612) 569-3300 Recreation and Community Center Phone TDD Number (612) 569-3400 FAX (6I2) 569-3494 An Affrmatiue Action/Equal Opportunities Employer Memo to City Council -2- January 7, 1999 that the marketplace is itself moving to a position where nearly all residential purchases will involve a comprehensive inspection. As pointed out in the article regarding St. Louis Park, these market-driven inspections are far more comprehensive and provide more protection and information for buyers than occurs under govemmentally-mandated inspections. Community Development staff have serious reservations regarding the staffing implications of adopting this ordinance as well as its enforcement. For transactions involving licensed real estate brokers, compliance with the ordinance will most likely approach 100%. There are, however, sales that occur on contract for deeds between individuals and sales by owner where anticipated educational efforts may not result in buyers and sellers being aware of the ordinance requirements. For example, a family member from outside of Brooklyn Center who attempts to sell by owner for an aged relative may be totally unaware of Brooklyn Center's ordinance. This would place the City in the position of having to consider enforcement actions against persons who were unaware of these requirements and who are not professionals such that they should be held to a higher standard of knowing these regulations. As the private marketplace continues forward with an increasing number of buyer-initiated inspections, an ordinance such as the one being proposed could well result in a duplication and a needless increase in the cost qf real estate transactions where the owner would be required to have the relatively cursory inspection required by the proposed ordinance and the buyer would contract for a far more comprehensive inspection. Another issue which has been raised with respect to this ordinance in conversation with members of the public, is the question of liability for these inspections on the part of the City. As Mr. LeFevere indicated at one of the previous discussions, the City does not undertake a duty toward the purchaser of the home or the seller of the home by viriue of requiring this inspection. Additionally, the inspection would be provided by a contractor to the owner and not through the City. However, the public perception would be that a lapse in the inspection that resulted in physical harm to either the seller or the buyer because the inspector failed to find a problem was somehow the City's fault. The staff consensus recommends ajainst adoption of the ordinance due to potentially labor intensive issues of enforcement and a sense that buyer-initiated inspections will soon become the norm, removing the need for an ordinance requiring a seller-initiated inspection. Attaclunents I �O. 1 r inance as Sent O d mission b Housin Com Y g i ALTERNATE (Alv1ENDED) �S CITY OF BROOKLYN CENTER (PROPOSED) ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIME OF SALE HOUSING 1NSPECTION, REQUIRING INSPECTION, DISCLOSURE OF CONSUMER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SALE, AND CORRECTION OF CERTAIN HAZARDOUS CONDITIONS THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. Chapter 12 of the City Ordinances of the City of Brooklyn Center is amended by adding the following: Section 12-1501. PURPOSE. The nuroose of this Section is to enhance the su��lv of safe. sanitarv and adeeuate housinQ for citizens of the citv of Brooklvn Center and to �revent the deterioration of existin� housinQ. Section 12-1502. DEFINITIONS. The followina words and terms when used in this Section shall have the followina meanin�s. unless the context clearlv indicates otherwise:, 1. "Dwellina" a buildinQ. or �ortion thereof. desiQned or used �redominantiv for residential occunancv of a continued nature. includina one-familv dwellinas. two-familv dwellinas, and multinle familv dwellinas: but not includinQ hotels and motels., 2. "DwellinQ Unit" a sin�le residential accommodation which is arran�ed, desi�ned,, used or. if vacant. intended for use eYClusivelv as a domicile for one familv. Where a�orivate �araQe is structurallv attached. it shall be considered as �art of the buildinQ in which the dwellinQ unit i� located. ;."Vlobile home" -(includes "Manufactured" Homes�. A sinale familv detached. dwellinQ unit desianed for vear-round occu�ancv_ constructed at a factorv or assemblv alant and drawn to the site on attached under carriaae and wheels. "Vlobile Home' shall not include, "Recreation Vehicle" as herein defined, nor shall it include modular or �arefabricated dwellina units, which meet or exceed the reeuirements of the Uniform BuildinQ Code., "Evaluation re�ort" a written re*�ort nrenared and siQned bv a*�erson licensed as a, time of sale housina evaluator in a communitv recoQnized bv the Citv of Brooklvn Center on a form, in com�liance with Section 12-1506 of this Code., 1 ORDINANCE NO. "Immediate hazard" a condition or defect which is likelv to cause in�urv to a �erson or Dronertv if not conected. "Issuina Authoritv" the Citv ManaQer or his/her desianated re�resentative. "Owner's AQent" a nerson who acts for or has the nower or authoritv to act for the owner of a dwellina unit. "Sale" the transfer of title or �ossession of a dwellina unit whether or not absolute. title is transferred. "Vacant" a dwellina unit which is not occu�ied. Section 12-1503. INSPECTION AND EVALUATION REPORT REOUIRED., 1. E�ccent as set forth in Section 12-1504 of this Code. no dwellina unit or mobile, home located within the Citv mav be voluntarilv conveved for consideration bv deed or contract for deed until the owner or owner's aQent has first a�nlied for and secured an evaluation orenared bv an evaluator meetin� the re�uirements under Section 12- 1505 of this Code. 2. A valid evaluation re�ort issued for the dwellinQ unit in euestion shall be nrovided to the buver nrior to the execution of a�urchase a�reement. The buuer shall be su�nlied a couv of the written re*�ort and shall siQn a co*�v acknowled�ina recei�t of that renort. 3. If the structure is in com+�liance with reQUirements of Section 12-1508 of this Code.. the evaluation renort shall state that the structure has been ins�ected and is in conformance. An evaluation re�ort is valid for one vear from the date of its issuance., The re�ort is valid onlv for the owner listed on the re�ort. 4. No �erson shall offer for sale bv e�chibitin� or sho�vinQ a dwellina unit within the citv, without havinQ first obtained an ins�ection and evaluation re�ort as described in this Section. The evaluation re�ort shall be consoicuouslv displaved for insoection at the �remises at all times that such dwellin� unit is beinQ offered for sale., Section 12-1504. EXCEPTIONS. The nrovisions of Section 12-1503 do not a*�olv to: 1. Anv newlv constructed dwellina unit when title is transferred to the first o�vner., The sale or other transfer of title of anv�dwelling unit to a aublic bodv. 3. The sale or transfer of title of anv dwellinQ unit for the �umose of demolition. 2 ORDINANCE NO. 4. The sale or convevance of anv dwellinQ unit bv a sheriff or other �ublic or court I officer in the Derformance of their official duties. This exem�tion does not aoplv to the sale of a dwellinQ umt b�� a�erson annointed bv a z�robate court. 5. The sale or convevance of anv entire multi�le familv buildina. Section 12-1505. EVALUATOR REOUIREMENTS. 1. Evaluators conductin� evaluations and com�letinQ evaluation rer�orts under this Code must maintain a current unex�ired Certificate of Com�etencv issued bv the Citu of Minneanolis. St. Paul or Bloominaton. The Citv Council ma��, bv resolution, recoanize Certificates of Com�etencv from additional cities. Evaluators must also, show oroof that he or she has a current unex�ired Certificate of Comoetencv from at least one of the aforementioned reco�nized cities., 2. Evaluators conductinQ evaluations and com?letinQ evaluation renorts tmder this Code. shall also show nroof of Qeneral liabilitv insurance insurin� the evaluator with, insurance covera�es and liabilitv limits which mav be s�ecified from time to time bv resolution of the Citv CounciL The evaluator shall maintain insurance continuouslv, in force thereafter. The citv shall be included as a named insured on the insurance, reauired herein at the exnense of the evaluator. The evaluator shall furnish the citv, �vith a certificate of insurance which meets the citv recuirements_ 3. The citv shall maintain a list of the names and tele�hone numbers of evaluators who, meet the reouirements of this section. The list shall be available to the aublic. Section 12-1506. FORMS. The citv shall nrenare or authorize use of forms as it deems a�DroDriate to constitute a, disclosure under Sections 12-1501 throuah 12-1 11. The form shall �rovide information concerninQ. Code reouirements_ ma�or structural defects and immediate hazards to health. safetv and �rooertv. i I I 3 ORDNANCE NO. Section 12-1 �07. DIJTIES OF EVALUATORS. 1. Each evaluator shall comolv with the followinQ: a. Maintain a current license with one of the recoQnized cities., b. Conduct all evaluations within the �ro�ram's �uidelines. c. Meet reouired continuina education re�uirements established bv the recoanized, cities, listed in Section 12-1505. 2. Each evaluator shall comnlv with the followinQ orocedure for orenarin� and filinQ reoorts: a. The evaluation reoort sl�all be either t�newritten or leQiblw nrinted in ink on forms furnished bv the citv. The re�ort shall indicate whether the condition of the dwellinQ unit meets citv re�uirements. is below citv reouirements or is deemed to be hazardous at the time and date of the evaluation., b. The evaluator shall submit the oriainal evaluation re�ort to the seller. The evaluator shall kee� a duDlicate co�v. Section 12-1508. CORRECTION OF IMMEDIATE HAZARDS., l. The followin� items. when discovered bv the evaluator. shall be identified as, immediate hazards in the evaluation reoort: a. Heatin� svstems that are unsafe due to burned out or rusted heat exchanQers,. burned out. rusted or �luQaed flues� no vent. connection with unsafe aas su��lies or inca�acitv to adeouatelv heat the livinQ s�ace. b. Water heaters that are unsafe due to burned out or rusted heat e�cchan�ers, burned, out_ rusted or nlu��ed flues. no vent. connection with unsafe �as su�nlies or lack of tem�erature and �ressure relief valves.. c. Electrical svstems that are unsafe due to dan�erous overloadinQ. damaged or, deteriorated eoui�ment_ imoronerlv taned or snliced wirin�. exnosed uninsulated wires, temnorarv distribution svstems. or unerounded svstems., d. PlumbinQ svstems that are unsanitarv due to leakina waste st�stems, fixtures or tra�s. lack of an ooeratine toilet. lack of washinQ and bathinQ facilities. cross connection of municinal water suoulv with fixtures or sewaae lines, or the lack, of water. e. Structural svstems includinQ walls. chimnevs. ceilinas. roofs. foundations, floor, svstems or decks which are not ca�able of carrvina imoosed loads. f. Exterior roofs. walls. chimnevs and foundations that are not �veather tiaht and, water ti�ht to the extent that it creates an immediate hazard., Abandoned stora�e tanks. h. Lack of o�erational smoke detectors located in accordance with the aaplicable nrovisions of the Uniform Buildin� Code., 4 I ORDIi�1ANCE NO. 2. No occuoancv shall be oermitted of anv dwellina unit if vacant and an immediate, hazard e�cits. If the dwellin� unit is occu�ied and an immediate hazard exists., corrective action shall be taken bv the o�vner or aaent of the owner. All reuuired revair/reolace items must be com�leted bv the buUer or seller within ninetu (901 davs of the date of the disclosure re�ort �vhether or not the �rooertv is sold. unless, otherwise exceoted bv this ordinance., 3. When correctina identified hazards. the owner shall obtain all necessarv permits from_ the citv and the *�remises shall be sub�ect to insoection bv an evaluator *�rior to occlroancv of the dwellin�., a. When identified hazards. not recuirin� a nermit from the Citv. are corrected, thev shall be re-ins*�ected bv an evaluator. When the identified hazards are corrected,, the evaluator shall indicate this on the evaluation re�ort. b. When identified hazards. recuirin� a�ermit from the Citv. are corrected, thev, shall be insnected bv a Citv Buildina Ins�ector as nart of the oermit ins�ection Drocess. When the identified hazards are corrected. the ins_oector shall indicate, this on the evaluation renort. 4. The buver mav enter into an a�reement with the seller that ��rovides that the buver will correct the hazardous items. Such aareement shall include the followina. �rovisions. at a minimum:, a. a siQned aareement from the buver acce�tin� resr�onsibilitv for correction of the, hazardous items: b. reasonable com�letion dates (no more than 90 davs after buver takes �ossessionl; c. evidence of financial abilitv to �erform the corrections. The buver shall comolete the correction of identified immediate hazards bv the snecified comnletion date. If the owner is a aovernment a�encv or if an aareement exists between the owner and. buver that the buver will correct immediate hazards as ;oart of a remodeling *�roiect. the buver mav correct immediate hazards identified in the evaluator's renort. A buver intendin� to conect immediate hazards must have written consent from the IssuinQ, Authoritv. Such written consent mav be sub�ect to the terms and conditions, includin�: a. a siQned a�reement from the bu�ier accer�tina resnonsibilitv for correction of the, hazardous items; b. reasonable com�letion dates (no more than 90 davs after buver takes aossessionl; i 5 ORDIi�tANCE NO. c. evidence of financial abilitv to �erform the conections., The buver shall com�lete the correction of identified immediate hazards bv the s;aecified comnletion date. Section 12-1509. FAILURE TO COMPLY., 1. The failure of anu owner. a�ent of an owner or buver to comr�lv with the provisions of Sections 12-1 �01 throuQh 12-1512 or to com_�lv with an order issued b�r the citv tiursuant to this Code. shall be a misdemeanor., The failure of anv evaluator to com�lv with the *�rovisions of Section 12-1505 shall be a misdemeanor and mav result in de-certification bv the citv. The citv mav also enforce �rovisions of Sections 12-1 �O1 throuQh 12-1512 bv mandamus. in�unction. or other a�nronriate remedv in a court of comaetent iurisdiction. Section 12-1510. WARR1aNTY LIMITATIONS., 1. Nothin� in the evaluation re�ort shall indicate or shall be deemed to indicate that a dwellinQ unit meets all minimum maintenance. housina and buildin� standards., Evaluations conducted �ursuant to Sections 1501 throu�h 1512 are made in order to, imnrove the overall housinQ stock in the citv and are not meant to be a warrantv or �uarantee of the dwellina unit evaluated. The re�oort issued bV the evaluator is not, a re�resentation to anv individual buver_ seller or renter re�ardinQ the condition of; the buildin� nor is the re�ort intended for the s�ecial benefit of anv individual., 3. The Citv of Brooklvn Center shall not incur liabilitv to a buver or anv other nerson bv reason of �erformance or non-*�erformance of the �rovisions of Sections 12-1501, throuah 12-1512.. Section 12-1511. IMMEDIATE HAZARDS., 1. Whenthere are immediate hazards. as defined in Section 12-1508. the evaluator shall. file a coov of the evaluator's re�ort with the Citv Buildina Official under the followin� circumstances:, a. The immediate hazards identified in the evaluation re��ort are hazards rec�uirin� a buildin� �ermit for their correction:, b. The evaluator has not re-ins�ected the orouertv and determined that the, imrnediate hazards identified in the evaluation re��ort. have been corrected within, 90 davs of the date of the disclosure re�ort accordina to the recuirements of Section 12-1508., 6 ORDINANCE N0. Section 12-1 12. APPEAL. A nerson aQQrieved bv a decision_ notification or order under this ordinance mav aot�eal such decision. notification or order to the council which mav reverse, modifv or affirm the same after a hearina u�on notice to the a��ellant. The aD�eal must (il be in writinQ, (iil sDecifv the decision notification or order aDOealed form. (iiil snecifv with narticularitv the basis and �rounds of the anoeal. and (ivl be filed with the clerk on or before 20 davs followin� the date of the decision. notification or order. Section 12-1 13. EFFECTIVE DATE. Sections 12-1501 throuah 12-1�12 shall be effective for d�vellin� units conveved on or after Januarv 1. 1999. Section 2. This ordinance shall be effective after adoption and thirty days following its legal publication. Adopted this day of 1998 Mayor ATTEST: City Clerk Date of Publication Effective Date (Brackets indicate matter to be deleted, underline indicates new matter.) 7 �To. 2 Recent Informat�on From the M�nnea olis Area p Associatlon of Realtors n ections and Re ardin I s g g p r nds T e MINNEAPOLIS AREA ASSOCIATION OF REALTORS` YOUR PROFE'SSIONAL EDGEi" January 4, 1999 I, i Tom Bublitz I CommLUlity Development Specialist City of Brooklyn Center 6301 Shingle Creek Parkway Brookly�n Cen±�:, T�' S5�30 Dear Tom: I have enclosed a copy of an article about the revised Miruleapolis Truth in Housing ordinance which became effective on January 1, 1999. The article was published in the Saturday Homes section of the Star Tribune on December 19, 1998. It is of interest to note that Tom Wigfield, city inspector for Saint Louis Park, is quoted in the article in response to a recent home inspection in Saint Louis Park in which another problem with the property was discovered when re-inspected by Mr. Wigfield. He stated in the article, "City inspectors have certain limitations. A buyer's inspector takes much more time and is niuch more thorough. That's really the way to go." This and other statements in the article reinforce the Association's position that as more and more buyers hire independent housing inspectors as part of the transaction, the belief that cities should impose their own less comprehensive housing inspection ordinances is greatly reduced. Sincerely, Bill Gerst Chief Operating Officer 5750 Lincoln Drive Minneapolis, Minnesota 55436-1694 Phone: 933-9020 1..�1 o..o..�.,.. a�. j Saturday H DECEMBER 19, 1998 SECTION r. StarTribune Nlinneapolis' ne�v truth-in-sale-of-housing ordinance may catch buyers and sellers una�vares. It �vill require some homeo�vners to make repairs to meet basic health and safety requirements before a deal can close. 4 �r� Y`� ea or In� ectlon Realtor Mada Montgomery ot Coldwetl Banker Bumet took notas during a reee�t preserMatlon on the new truth in aak o( housing wdinanee that goes hto efteet Jan. i in MlnneapoNs. r."�:+��i ::i�� ,;s:i. `t r. �,i; Stephanb y� .�r. �11'`. Hendridcson, shown E at left (n photo with her son, Jimmy, and daughter, Anna, d!s- f covered some defects not found In the inspeetion when she bou�rt thb home In St Loufs Park. YVhib that sub urb has a sfmpaz adF nanee to tfie one MMneapops adopted, both ttro Initlal Inspeetor and cky ro- inspecta diddt 8ag a wet baaemeirt and mhslag ehlmnay I j; �;a�:T�1;;,,+ Ky .;r �:s:� �s f ;'.fy `^.�y nv :rt->: Star TriDune photos by Ouane Braky �e�ers mu�Z �d���r��r�r��a�u��� 3 gy 1Im Buchta the purchase aF;reement in June, she not displayed at the house that's fc,r salc. h Star Trib�ute St�ff Writer learned the house had defects that weren't Hendrickson admits that failing tc� hirc flagged by the initial evaluator or by the her own independent home inspeci��r «>.x I3eginning Jan. i, a new Minneapolis city re-inspector, who is only required to before signing a purchase agreenunt �ti�as ordinance will require people who sell examine items flagged by the evaluator. a mistake. `R� houses�in the city to have the houses One problem was a wet basement, °I figured, it's in black ancl �vhite ��t°; examined to make sure that they meet a apparently caused by a poorly graded you get this important-looking cer�ifi- u list of basic health and safety re- yard. The evaluator noted that the cate from the city that says that nvu quirements. basement had evidence of staining and people have inspected this house, and ii The ordinance is an enhancement to that there were two low-graded areas in seems like this was enough," she said. "I the truth-in-housing disclosure state- the yard. took that report at face value, �incl ii r ment that the city already requires The city inspector, Tom Wig�eld, who wasn't accurate." �r i` a�,�� but the nrwlaw will require fixing ccr- also is manager of St. Louis Park's housing Wigfield agrees that home huycrs tain defects, not just notifying buyers inspection pro€;ram, reinspected the must not rely on the truth-in-hc�usin�; about thern, tiouse to make sure that repairs had been report as a warranty. Before you list a house for sale, you'll made, and it appeared that someone had City inspectors °have certain lin�it�i- While it eomes with a have to hire a city-licensed evaluator who solved the problem by dumping a couple tions," he said. "A buyer's inspector tcikes disclaimer, some people get ;�'ill insper.t 11 items and conditions that of buckets of dirt into a low spot near the much more time and is much morc thur- the city d�ems hazardous to health and foundation. So he issued a certificate of ough. That's really tlie way to go. the wrong irnpression about safety. The evaluation does not include an approval. But the extra dirt didn't solve the the re ort's extent and pur- assessment of indoor air yuality or problem, a►,a He,�ar��kson �5 ea�;�, a �ou- More on the new law p re uire testin of combustion a liances. le of tllousand dollars in re airs. Will Minnea olis ro�t fron� tt�e 9 g PP P P P P pose Before closing, the seller must correct In retrospect, Wigfield said I�e wished ordinance? Not likely, said builciii��; ii�- figured it in black and problems or make arrangements with the evaluation would have been more spector Lynn Ogren. While repairin}; iuhite you get this impor- the buyer to do so. Then a city inspector specific about where the drainage prob- truth-in-housing problems �vill son�e- ta�zt-looking certificate, from will reinspect the house before issuing a lems were. times require fee-generating builciing E�cr- the city that says that two certificate of approval. Another problem arose when Wigfield mits, the city is simply hoping that the While the ordinance is intended to came back to Hendrickson's house after moneywill cover the costs of the prograii�. people have inspected this improve ti�e safety and condition of the closing to discuss the water problem, Will the lnspectors be educated lzouse, and it seems like this city's housing stock, there is concern and he discovered that a metal chimney and certified? The evaluators must bc was enough I t00/C tftlit that it will slow home sales by delaying liner, noted in che inspection as "pre- licensed by the city. They alsc� must pass re OTt llt ace value, and it closings. sent," was missing. a test, pay a certification fee and a�tencl p .f There's another concern, as well Because the reinspection is consid- a four-hour training class. 8valuators <�l- wasn't accurate that home buyers will get a false sense of ered a public service, St. Louis Park is ready licensed with the city will not lia�•e security that the house has been thor- not liable for failing to note the drainage to take the test. Stephanle Hendrlckson, StLouis Park oughly inspected• and that they don't problem a[ Hendrickson's house. She is Will the c(ty hlre more inspcc- resident who discovered defects in her need to worry about potential defects. seeking compensation through the pri- tors? There are now about 3U ins��ectors recentry purchased home that weren't vate evaluator's "errors and omissions" in the trades and building departiiiei�t, detected by the evaluators. Problems ean be missed insurance policy for his failure to note which has approval to create four new Consider, for example, the case of the missing chimneyliner. positions, including three inspectors aixl Stephanie Hendrickson, who in Septem- Hendrickson's biggest complaint one office support job. ber bought a house in St. Louis Park, one abou[ the St. Louis Park ordinance is How much Is the evaluatlon fee? of several metro-area suburbs that has a that even though the paperwork has dis- The seller will pay an evaluator's [cc truth-in-housing ordinance similar to claimers saying it is not a buyer's inspec- ranging from $85 to $150, including a the one in Minneapolis. tion, she believes there is a suggestion $20 filing fee paid to the city by tiie The house had a certificate of approv- that the truth-in-housing evaluation is evaluator. In most cases there won't be a al indicating that it had passed the city's some kind of assurance of qualiry. charge for the reinspection. requirements, which are much stricter "It's misleading," she said, adding than those in Minneapolis. that she thinks the evaluation docu- But shortly after Hendrickson signed ments ought to be kept by the city and INSPECTION continues on next page Sr\'tURDaY, DE.CE`tBER 19 1998 STAR TRIBU�E PAGE HS INSPECTIOH from prsvious page New tnspectton rules ��j,owest Rates" Are properties that are con- demned or Foreclosed upon excmpt Items that must be from evaluation? Foreclosed properties re aired or re laeed du nut nced an e��alua[ion to transfer P P ou•nership to the lender or to another Ladc of propery bcated a operational government agency such as the Depare- smoke detectora ment o( flousing and Urban Develop• >Brckenorpggedglass. ment or thc hfinne�polis Community >Unsafeheatingsystems,whichmay f)evelopment ;\gency. need to be certifieC as safe by h'ring a An evaluatioei will be reyuired i[ the GcensedconVactor. agency sctls a housc to a privatc >Unsafewaterheaters,includu�gthose Lowest Fees" party. Propertics condecnned for hazard- with missing u broken pressure-tem- ous condi[ions will reyuire an even more pereNre vaNes, conVOls or discharge Refinance or Purchase stringent code compliance inspection. pipes. Will inspections be required tor Unsafe elecV�al systems.usualy Debt Consolidation townhouses and condominiumsY e�cposed w�es and ungrounded or All Credit Welcome The ordinance appties to all town- impropery fused systems houses and onc- and two-family houses. Unsafe plumbing systems, includng The seller's res onsibilit �se with missing water ppes, open� P Y ings in waste/vent �ines and missing Is thc seller responaible for ordcr- clearrout ptugs in floor �ains ing the inspection? Lack of uWities (gas.water, electricity� 1'es. �VI o�vners are required to hire a Unsafe swctural systems, such as bro- pny s�ammrn� .1 curren� Mun mrm, onJ nMJirw�ro pn. cii}•-ticensed truch•in-housing evalua[or ken or deteriorated basement or exte� v�kJ hy 4unR.► n mx an .xier tu enrcr �rou a 4mn �1 a to perCorm an inspection and file a dis rior steps. Keci&intemtr��e,wr�mtw�xhah. Anv�h��Ysrma� closure report with the �tinneapolis In- Improperanduncappedgas lines. �'^���""�rv^� spections Division �vl�en the house is Excessive and disorgan¢ed storage of li�ted Cor sale. newspapers, clothing and other itemS The cicv �tiill consider the house tor sale Gross unsanitary conditions including if it is ad��ertised for sale, if there is a garbageorotherunsanitarymaterials. signed listing agreement with a real estate �gent or if a"Cor sale s�gn �5 posced. Items that would not have D t 'ou must have an evaluator's report to be re aired or re laced Gi�i_ in hand belore showing a house to P P prospecti�•e buyers. Roofs. O, f new We: If the i�ispector doesn't Find anything Missing storm or primary windows or MILLENNIUM MORTGAGE that needs repair or replacement. the doors lnspections Division can issue a certiFi- Missingwindow sashes Wholes� cate o[ approval to the o�+mer/seller.' Holes in walls and ceilings. !f items are in need of repair or re- >Peelingpaint Refinanee placement, then the owner/seller wi(1 Tom carpeting and broken Ules receive a packet with information on Plumbing'S' Vaps «•hat needs repair or replacement and GaNan¢ed plumbing systems,'rf they Lo�ns to S3 Million FREE Pre �vha� ���ork requires a permit or must be are functional No Money Down Programs 5� done by a licensed con[ractor. Below-standard 3a or 60-amp elecVical Aftcr repairs arc made rcgardless service, v�h'r„h tices not have to 5e �/e sho Dozens of Ranks to �et of �vho makes them the reinspection upgraded to 100-amps unless tam- P a mus� be done by a ciq� inspec�or. pered with or with improper fuses you the BEST RATE and the How soon after 1 list for sale or Ladc of faundry facilities a floor drairL advercise my propercy do 1 have to Partial basements and crawl spaces LOWEST CLOSI1�iG COSTS! schedule an evaluation? You must have an e�aluation by a licensed evaluator or an appointment for an evaluation �vithin three calendar days of any such action. regardless of whether the house sells? How ts thts different from the Yes, if an inspection has been performed. truth-in-housing disclosure report that How long is the evaluation valld� �tinneapolis now requires? The truth- The truth-in•sale-of-housing disclosure in-housing inspection did not require report is valid for one year or one J i1G�f�Lf�.I WV 6/ I fi repairs, jusc disclosure oFproblems. change in o�vnership. Will the seller still have to Fill out a How will the city know if I'm sell- disclosure form? Y'es. Sellers or agents for ing my house? The city wil! track calls �uxury cownhome Ii�ing in a secluded Minn� �he sellers must disclose whether or noc from evaluaeors seeking information from finesc in maincenance free living wich main there has been any flood damage, sewer che city about a propeny being listed for suires in zpacious 2 and 3 bedroor„ back-up or �vacer seepage. The eva[uator sale. Ogren said that citv employees also «•ill ask the sellets to fill out this section of will spot-check ads and Cor-sale signs. plans! You'll enjoy unique li�ing �he report. Sellers also must disclose the Title and closing companies also will be zpaces, mascer suice walk-in closec. age and condition of the roof, al�hough required to have a certifica�e of approval �encral air, all appliances and repairs of roofs and wa[er damage usually before closing. IF they don't, they may be are not required unless they could cause a penalized. enormous scorage space throughouc. structural faiture. What if I don't order an Inspec- What are the expected average tion or don't make the necessary re- cost of reoairst Building insnector pairs? Failur? to cornp!; �.vith ttie ordi- of the r Ogren estimates 5300 to 5800. nance or to make repairs may be a �9�4 'l? Who pays? Usually the seller, bu[ misdemeanor and it may result in a fine, 1 or��a�� ic's up to the buyer and the seller ro jail time and failure to close the sale. ceaar nego[iate the cost. >�Yhen do have to provide the cer- ��r Cenc�� Does a certifcate oF approval tificate of approval� At the dosing, pN� a�'"� �p� Co.�e'z have to be issued before closing? Yes, unless the seller and buyer both sign an f� ]�sc io unless a conditional certificate of ap- agreement that transfers the responsibil- Jj'� r- P��is p�recno pro�•al has been issued., ity for the repairs to the buyer. The c �bq tek Witl this delay my closing� Ogren Inspections Division may issue a condi- o suggests allo�ving seven days to schedule tiona! certificate of approval, and then a a reinspection. She said delays are moce final cenificate when repairs aze done. likely to occur when repain are needed. nformation eall 6S ��7r Do the repaIrs have to be made INSAECi10N eorHinues on Hii 1 C'allt�' \/llVtll'1. \�IIC'll lllt' at�c'Ia1�C t Ill talll'� t1tl Il�lt 11111�l1�� i.��a� �ii,., r�i ��vu�v �a..0 u�t;J u•ru�n �c�J��� vu ii re:i��hed a 31-�•rar lo�ti• of G.4S) percent. known as E�oints, which a��craged �at or b�eakfast bar and a maintenance-free exterior witt•. 'I�he avera�;e tias reinained belo�v per- just undcr L percent of thc loa►� a�nouiit ccnt since mid-►w�e. It reached 7.22 per- for all threc t��pes of mort�;a�;es. Price when judged cent in late April, its peak for the }�ear so —Associated Press far. The Home Plnrt is a regular jeatr�re oJ for l:omes tlrat were selecte�l as aivard t��i the Builders Association of tlte Truiit Citic I� ECTION from H5 :�►�r erior desig�i firn:s ai:d others iuitlt knor, co�:structio►:. SketcJtes are provided Gy Required re�airs noted by ins�ector `"t a S�e�`�� p�,`, call t{ae build� must be made even if house not sold Do I have to get a certificate of and that the city does not assume any approval every time I try to sell my responsibility or liability in connection house? The evaluator's disclosure report wiih the inspection. is good for one year from the date of Buyers can appeal an inspector s de- issue and only for the owner named on cision by complaining to the Truth-in- the report. Sale-of-Housing Appeals Board. It will If I list my house for sate before cost $100 to file the appeal, which must Jan. 1 but the sale doesn't close until be made within 30 days of the evalua- after Jan. 1, do I still have to comply tion. Call 612-673-3961 for information. r�• with the new law? Home sellers who The appeals board may examine the obtain a truth-in-housing report before conduct of the evaluator. Jan. 1 will not have to comply with the Evaluators are required to carry "er- new law. rors and omissions" insurance, which 'w'=� `t'- Am I also required to have a code might cover some problems. If evalua- compliance inspection? No, only if the tors violate the licensing provisions of property is condemned for hazardous the ordinance, they may be guilty of a: conditions. misdemeanor. How thorough is the inspection? The buyer s responsibility Will the inspector be required to look Can the buyer make ihe repairs behind furniture, in attics or behind or agree to make the repairs after the fuse box doors? closing? Yes, if the seller enters into an No. This is a very limited overview of agreement with the buyer before the buildings and fixtures basically a visu- Master cl�°'ng. The seller must submit a"re- al inspection. suite s ibility agreement," signed by the For example, ihe evaluators are not g b�, to the Truth in Housing depart- re quired to turn on the pilot li ght for the ment, which issues a conditional certifi- furnace or the hot water heater. (If the cate of approval to be presented at pilot light isn't on, the sellers may be closing. responsible for having the appliance cer- Repairs must be completed within 90 tified by a licensed contractor). days of closing, and then the Truth in Evaluators also are not required to Housing department must be contacted use a ladder to inspect the roof, nor do for a reinspection by a city inspector. If they have to inspect inaccessible spaces 8 i satisfactory repairs are made, ihen a cer- or move furniture. They also don't have tificate of approval can be issued to the to note information about the presence buyer. of formaldehyde, lead paint, gas, asbes- Will the evaluators or inspectors tos, wood stoves, fireplaces or air condi- s te l l me i f t he house doesn't meet bui l d- tioners. ing code? Not necessarily. This is not a They also don't have to remove and code-compliance inspection. The evalu- look behind the fuse box panel. ators have a set list of items they are Does the Minneapolis Communi- II Garage responsible for evaluating. If they see ty Development Agency have any mon- something that is below code but is not ey available for repairs? mentioned in the report they may make The MCDA has several loan programs r-------� a note of it, but they are not required to for owners, but may add other programs i i i I comment. targeted at people with inspection com- i i Nothing in the evaluator's report pliance problems if there's a strong de- i i i i guarantees or warrants that a dwelling mand for such loans. Homeowners also meets all minimum maintenance, hous- may be eligible for an extension of time ing and building standards. to fix problems. What happens if an inspector fails The full text of the ordinance can to note a hazardous item? Can buyers be seen at http://www.ci.minneapolis. sue the inspector? Do they have re- mn.us in the "Ordinances Recently Pro- course against the seller? Can they posed andlor Passed" category. force the city to pay? e certificate of approval plainly s� that it is not a guarantee or a wa ranty to the buyer, seller or renter i �TO. 3 A uestion an A d nswer Sheet on the P ro osed p Ordinance as I: date db p Y Tom Bublitz s CITY OF BROOKLYN CENTER i PROPOSED TIME OF SALE HOUSING INSPECTION PROGRAl�i QUESTIONS AND ANSWERS I The purpose of t{ie proposed Time of Sale Hoacsing Inspection Program is to provide potential pcerchasers with infonnation about tlie condition of a dtivelling and rvoeild require tlie correction 'of items defined as im�nediate ltazards. The following`Zist of questions and anstivers provides information on key elernents of the proposed Tinae of Sale Inspection Prograni What dwelling units are affected? All single family artd trvo family, inclacding condominiurns and totivnhouses. Mobile homes are included. When must the property be inspected? The properry rnust be inspected and a re ort orm com leted rior to o erin the ro e or sale. P f P P .1.� 8 P P�'.f The Housi�ig Evaluation Report must be available for review by potential purchasers at all times that the property is offered for sale. �Vho does the evaluation? The seller can choose any licensed independent housing evaluator tivho maintains a current certificate of competency fro�n the City of Bloomijagton, Minneapolis or St. Paul. These cities provide for testing and certification of private housing evaluators. The City will maintain a list of private housirag evaluators who meet the certifzcation reqatirements of the cities designated in the City of Brooklyn Center's proposed ordinance. Evaluators micst request to be placed ori the list and show proof of the required insurance. What does an evaluator do? The evaluator will ezamine the dwelling's visible structural elernents; heating, electrical and plumbing systerns; and other components of construction. The evaluator will look into accessible, unoccupied areas such as attics and crativl spaces, but will not take apart any building components. The evaluator cannot identify conditions that are hidden and inaccessible. i Ho�v much docs it cost? Based on similar progrants in other cities, the initial evaluation report may cost the se[ler $100 to $125 for a si�tgle family home inspection a�id $125 to $135 for an evaluc�tion report done on a c�upl�,c. 77zis is an estimate only and the actual fee will be negotiated between the seller and the private evak�ator. If hazardous ite�rzs are noted in the initial evaluation report that do not require permits and it is necessary for tlte private evaluator to re-inspect the property to evalccate correctio�t of the hazardous itenrs, the inspector may charge an additional fee. HaZardous ite�ns reqcciring permits to correct tivill be rei�ispected by City building inspectors. Stan�iard building permit fees tivill be charged for these items. Ho�v are corrections of hazardous items monitored? Whe�i hazardous iten�s are identified by the evaluator, correction of the identified hazardous items mccst be ntade. Follow-up on the correction of hazardous itetns will be done in the following wcrys: 1. For haZardous items not requiring br.cilding permits to correct, private evalccators tivill follow-up to niake sure the items have been corrected. 2. For hazardous items requiring building permits to correct, City building inspectors will follow-up through tlze rtormal building permit process to rnake sure the items have been corrected. When must corrections of hazardous conditions be completed? The ordinance would require that the seller conaplete the repairs of any hazardous items identified in the evaluation report within 90 days of the date of the evaluation report, whether or not the property is sold. The ordinance provides an exception if the seller and buyer enter into an agreement to allotiv the buyer to correct the haZardous items, in tivhich case the buyer must complete correction of the hazardous items within 90 days after the buyer takes possession of the home. Failasre of any owner, agent of the owner or buyer to comply with the provisions of the ordinance tivould be a misdemeanor violation. What are the most common hazardous items called out in housing evaluations? Based ofa the e.xperience of other cities tivith similar programs, the following items are the five most cornrnorz hazards found in housing evala�ations. 1. Lack of or improperly installed smoke detectors. 2. Electrical fcxtures and cover plates. These include outlets and junction boxes with missing cover plates and broken or cracked stivitches, outlets and fzxtures. 3. Backf[ow prevention devices. Protection of potable tivater for inl�abitants of a dtivelling (and also the city tivater sacpply) is of great importance. In most cases, a hazardous water supply condition can be co� by adding an anti-sipito�t backflow prevention device to the water supply. Cojrunon locatiojts where a backflow prevention �fevice is reqtcired are: a. Outside garden hose connections. (All must be protected). b. Laundry tubs with a threaded faucet for a hose connection. c. Hand-held shotiver sprayers tliat could hang into tub water. Other locations tivhere backflow or siphoning could occur are toilet ballcocks that are not located above the tank water line, any faucet that discharges below the spill line of its receptor, and lativn irrigation systems having ijnproper backflow protection. These haZards must also be correctecl. 4. Garage door operters. Mairy garage door openers are plugged into �rtension cords. T7ais type of wiring is a hazard. All garage door openers must be plugged directly into approved outlets. An electrical perrnit must be secured to install a netiv electrical occtlet. Other appliances tivhich cannot be connected to eztension cords are water softe�zers, window air conditioners, tivashing machines, clothes dryers, sump pumps and other "permanent" appliances. S. Electrical groujid. Electrical syste�r�s must be properly grounded. One of the areas where grounding is required (and ma�ay times anitted) is around the tivater nieter. A #6 tivire (a #4 wire if electrical service is 1 SO amp or greater) is required to be attached to the house side of the water meter with an approved clamp and also to the street side of the water meter with an approved clarnp. Is the evaluation a warranty? No. The evaluation is not a guarantee or tivarranty. The Housing Evaluation Report will be completed tlirough visual inspection of the property. The evaluator cannot guarantee that problems tivill not occur after the inspection. G:�DEPTS�EDA�BUBL[iZ\OTHERIT[MESALE.QA Councilmember Hilstrom stated that she had spoke to several residents and took a survey which resulted in 71.4 percent opposed, 25.4 percent in favor and 11.0 percent unlcnown. Mayor Kragness indicated that she received a letter from a resident regazding the issues faced with the purchase of i their new home. Councilmember Nelson asked for an historical update. Ernie Erickson, Housing Commission Vice- Chair, was present to update Councilmember Nelson and the audience the time involved and the issues that ha.ve been undertaken. Mr. Erickson reviewed some of the questions and answers relating to the time of sale inspection program. Ivlayor Kragness added that one of the most important questions was, is the evaluation a warranty. No, the evaluation is not a guarantee or warranty. The housing evaluation report will be completed through visual inspection of the property. The evaluator cannot guarantee that problems will not occur after the inspection. Council fiu ther discussed the proposed amendments to the ordinance and what options residents would have if this ordinance was not amended. Mr. McCauley responded that there aze resources and agencies available for first-time home buyers. This information can be obtained from the City's Community Development Department. During the discussion code enforcement was reviewed and, Mayor Kragness indicated that code enforcement has improved and that it is part of the residents responsibility to help the City with code enforcement. Councilmember Hilstrom stated that she was not supportive of the ordinance amendment. Councilmember Peppe and Councilmember Lasman agreed that they were also not supportive of the ordinance amendment and wanted to express genuine thanks to the Housing Commission for a11 the hazd work they provided which had raised many issues and a productive discussion. Dan Remiarz, 6201 June Avenue North, Chuck Lenthe, 7007 Irving Avenue North, and William Anderson, 5507 Irving Avenue North, address�d the Council to express that they were opposed to the ordinance amendment. A motion by Councilmember Hilstrom, seconded by Councilmember Peppe to take no action on the proposed ordinance amendments. Motion passed unanimously. 9b. AN ORDINANCE AMENDING CHAPTER 23 OF THE CITY ORDINANCES RELATING TO PAYMENT BY PAWNBROKERS AND SECONDHAND GOODS DEALERS FOR ITEMS PLEDGED AND LOCATION OF PAWNBROKERS Mr. McCauley reviewed the amendments to the ordinance and stated that the purpose of tonight's meeting is to set the public hearing and introduce the first reading. 1/11/99 -12- Mr. McCauley discussed this ordinance is amending Chapter 35 of the City ordinances to rezone the property at 5001 Drew Avenue North from G2 to G1, and that the Planning Commission recommended approval of this amendment. The re-zoning would be more restrictive than the current and would pemut the owner to expand since only office/commercial uses would be allowed. The uses do not require as much setback as uses under C-2 which could be more intense. A motion by Councilmember Hilstrom, seconded by Councilmember Lasman to open the Public Hearing. Motion passed unanimously. No one wished to address the Council. A motion by Councilmember Lasman, seconded by Councilmember Pe�pe to close the Public Hearing. Motion passed unanimously. ORT�INANCE NO: 99-06 Councilmember Nelson introduced the following ordinance and moved its adoption: AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING THE ZONING CLASSIFICATION OF CERTAIN LAND (5001 DREW AVENUE NORTH) The motion for the adoption of the foregoing ordinance was duly seconded by Councilmember Lasman. Motion passed unanimously. 9, COUNCIL CONSIDERATION ITEMS 9a. AN ORDINANCE AMENDING CHAPTER 12 OF THE CITY ORDINANCES IMPLEMENTING A TIME OF SALE IiOUSING INSPECTION, REQUIRING AN INSPECTION, DISCLOSURE OF CONSUMER INFORMATION CONCERNING THE CONDITION OF A DWELLING PRIOR TO ITS SALE, AND CORRECTION OF C�RTAIN HAZARDOUS CONDITIONS Mr. McCauley summarized the information that was provided with the agenda materials. A notice in the City Newsletter and television notifications of this ordinance were published informing residents of tonight's public meeting. Since the beginning of this process, the market has changed dramatically towazd buyer use of professional inspections. The Realtor's Association had use to this market change, changed it's position from support of this type of ordinance to a position favoring allowing the mazket place to deal with inspections. 1/11/99 -11-