HomeMy WebLinkAboutORD 2709·• • ORIGINAL
ORDINANCE NO.
ORDINANCE Of TilE COUNCIL OF TilE CITY Or PALO ALTO
ADDING CHAPTEl< 4_15 TO THE PALO ALTO MUNICIPAL COIJE
ESTABLISHING KEGULATIONS PERTAINING TO OWNERSHIP AND
MANAGEMENT Of APARTMENT COMPLEXES
The Council of the City of l'<llo Alto dol'S ORDAIN a~ follows:
SECTION I. There is hereby added to the Palo Alto Municipal Code a new chapter to
be entitled "Chapter 4.!5 --OWNING AND MANAG(NG APARTMENT COMPLEXES," to read
as follows:
Sections
. 4.15.010
4.15.020
4.15.030
4.15.040
4.15.050
4.15.060
4.15.070
4.15.080
4.15.090
4.15. !00
4.15.llC
4.15.120
4.15.130
4.15.140
4.15.010
nCHAPTER 4.1 S
OWNING AND MANAGING APARTMENT COMPLEXES
Definirions
Business license for apartment complex
Lkcnse for apartment man:Jger
Nonrcgulatory apartment manager license
Employing an apartment manager
Application to treasurer
Reports on employees and agents
Informational sign
inquiry list
Records on available dwelling units
Regulations for records
Advertising rentais
Grounds for denial, probation, and penalties
Compliance standards
Definitions. For the purpose of this chapter, unless it is plainly evider.t from
the context that a different meaning is intended, certain terms used herein are defined as follows:
(I} Apartment complex. "Apartment complex" means a group of two or more
dweliing units, whether located in the same building or in adjacent buildings
or both, which is owned by the same person or persons and which is designed
or built to be, or is, rented, leased, let, or hired out as the home or residence
o: two or more families; provided, however, that a gn•up of two dweJHng
units is not an apartme.nt complex if one of the dwelling units is occupied
by an owner of the group.
, (2) Apartment manager. "Apartment manager" means a person who operates
an apartment complex. Such person may be an owner of the apartment
complex or an ag~nt of an owner of the apartment complex. The operation
of an apartment complex normally includes, but is not necessarily limited
to, the following functions:
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(a) Determining the terms and conditions of till' renting, leasing. letting,
or hiring of a dwelling unit;
(b) R~nting, leasing, letting, or hiring a dwelling unit to any person;
(c) Collecting rent of any nature from a tenant of a dwelling unit;
(d) Carrying out and terminating an agreement to rent, lease, let, or
hire a dweHing unit as the lessor or the agent of the lessor;
(e) Carrying out the duties of a lessor specified by law; and
(f) Maintaining the physical condition of an apartment complex.
If no ont:> person is responsible for all of thl~ functions of an apartment
manager, then each person who is responsible for each function of an
apartment manager is an <lp<utment manager; provided, however, an owner
of an apartment complex who only detennincs the terms and conditions
of renting, leasing, letting, or hiring a dwelling unit is not an apartment
m~nager. l'ersons acting under the direction and coJttrol of an apartment
manager arc not dcl·med to be apartment managers.
(3) Dwelling unit. "Dwelling unit" means or,e or more rooms which are occupied,
or intended or designed to be occupied, by one family with facilities for living,
sleeping, cooking, and eating.
(4)
(5)
Family.
unit.
Owner.
of, or
"Family" means one or more persons living as a single housekeeping
"Owner" means any person or persons having proprietary control
right to proprietary control of, an apartment complex.
4.15.020
of an apartment
Business license for apartment complex. (a) License required. The owner
complex shall obtain a business license for the apartment complex. It shall
be unlawful for any person to operate, or cause to be operated, any apartnient complex unless
a business license for the same has been issued aud i'> in full force and effect.
(b) Transfer of license. A business license for an apartment complex is not transferable
to any other apartment complex, but it may be transferred to a subsequent owner without the
payment of an additional license fee upon application for a transfer to the treasurer.
(c) License fee. The fee for the issuance or renewal of a business Jicenst! for an apartment
c.omplex shall be two dollars p..;, )'\!ar for ea~:.~h dwelling unit in the apartment complex up to
a maximum of two hundred thirty dollars.
4.15.030 License for apartment manager. (a) License required. Every apartment
manager shall obtain an apartment manager license for the ap;utment complex he operates.
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(b) Presumption concerning resident manager. Any person rcsid ing in tht: ap41ttment
complex and designated a~ !he "apartment manager·• or like lilk is presumed to be an ap<Jrlment
manager of that apartment l'0mplcx.
(c) Transfer of license. An apartment 111anager lkcnse is not transferable to any other
apartment complex.
(d) Cancellation of Jkense. An +lpartm~.:nt manager li~cnsc shall be l'ancclled automatically
when the licensee c<?ases to act an an aparlmcnt manager of the apartment complex for which
the license was issued.
(e) License fee. The fee for the issuam~c or renewal of a regular apa1 tment manager license
shall be ten dollars per year. The fee for the i5csuancc or renewal of a nonregulatory apartment
manager licen:~r shall bl, five dollars pt·r year.
4.15.040 Nonregulatory apartment manager license. (a) Exemption. Every apartment
manager who m•:ets both of the following conditions may obtain a nonregulatory apartment
manager license for the apartment complex he operates:
( 1) Holding a valiu real estate broker's license issued by the State of California.
(2) Being required to have such a real estate broker's license in order to perform
any or all of his functions as an apartment manager for ihe apartment complex
i•t question.
(b) Cancellation uf license. A nonregulJtory apartment manager license shall be cancelled
automatically when either or both of the conditions specified in subsection (a) hereof cease to
exist.
(c) Applicability of law. Except as otherwise specifically provided in this chapter, a
nonregulatory apartment manager license shall be deemed to be an apartment manager license
for all purposes.
4.15.050 Employing an apartment manager. It shaH be unlawful for any person to
employ or compensate in any manner any person as an apartment manager if such apartment
manager is not licensed for the apartment complex he is to manage or ~f ti·.e license of such
apartment manager is not displayed at the apartment complex he is to manage as provided in
chapter 4.04 of this titlt.:.
4.! 5.060 Applicatior, to treasurer. (a) Application fonn. Application for any license
desr:ribed in this chapter shall he made to the treasurer, who .JtaH prescribe and provide forms
to be used by the applicant and who shall require of such applkant, as a condition precedent
to_ the approval of such application, such information as he deems necessary to ascertain whether
the causes to deny the applicatioil spc::ified in this chapter exist.
(b) Apartment manager license. Every application for an apartment manager license shall
contain at least the following information:
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(I) The name and address of every person who, as presently known, will be acting
under the supervision and control of the applicant in carrying out his duties
as an apartment managa.
(2) Whether the applicant hag ever been licensed by the city as an apartment
manager and, if so, the dates when so licl·nsed.
(c) Regular apartment manager JkenSf'. Every applkation for a regular apartment manager
license, as distinguished from a nonrcgulatory apartment manager license, shall contain at l!'!ast
the following information in addition to that specified in subsection (b) hereof:
( 1) Whether the applicant has ever acted as an ·apartment manager, whether
licensed or not, or as the agent of an apartm~nt manager within the previous
five years and, if so, the owner of each apartment complex, the address of
each apartment complex, ~nd the dates of each such management activity.
(2) The date of birth, place of birth, and aU n<:mcs previous]}' used by the
applicant.
(3) Whether the applicant has ever had a court judgment rendered against him
in connection with managing an apartrnent complex as the apartment manager
or an agent of the apartment manager and, if so, ~he na!ure of the court
action, the date of the judgment, the names of the parties to the court action,
the city and str~te where the judgment was rendered, th(~ amount of the
judgment, and whether such judgment remains unpaid.
(d) NonreguJatory apartment manager license.
apartment manager license shall contain at least the
spedfied in subsection (b) hereof:
Every application for a nonregulatory
following information in addition to that
(1) A statement that the applicant holds a valid real estate broker's license issued
by the State of California.
(2) The number of such real estate broker's license.
(3) A statement that the applicant is required to have such a real estate broker's
license in order to perform any or all of his functions as an apartment manager
for the apartment complex in question.
4.15.070 Reports on employees and agents. It shaH be the duty of every owner and
apartment manager of an apartment complex to ha\.·e 'HI file with the treasurer a current Jist
of the persons who wm be acting under the supetvision and control of the apartment manager
in carrying out his duties as an apartment manager In addition to such other information as
the treasurer may require, similar information as required under ~ubsections (b )(2), (c)(l ), (c)(2),
and (c)(3) of section 4.15.060 of this chapter l.·cncerning each of such persons shaU be transmitted
to the treasurer on the forms he prescribes and provides.
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4.15.080 Informational 'iign. (a) Contents and regulations. The city manager shall
devise a sign \:Ontaining information on the following:
(I) Records <!Vail able at an apartment complex:
(2) Housing discrimination laws;
(J) Complaint referral servh:cs offered by the city;
(4) ldenhfh:ation of the ap<utmcnt manager; and
(5) Any other relevant matters.
The city manager shall provide each apt~rtment complex with one sign at no charge. The city
manager shaH prescribe regulations, including charges, for any additional signs provided to an
apartment complex. The human relations commission shall approve the sign and regulations by
motion. The council shall adopt the sign and regulations by motion.
(b) Display. The sign adopted pursuant to this section shall be continuously erected or
posted in a conspicious place in the following locations for every apartment complex:
(i) In every rental office or its equivalent.
(2) If there is no rental offke in the apartment complex totally separate
from the residence of the apartment manager, then next to the main
entrance to the dwelling unit of the resident a~artment manager.
(3) lf then: is no rental office in the apartment complex and no resident
apartment manager, then at every obvious entrance to the apartment
complex.
(c)· Persons responsible for sign. It shall be the duty of every owner and apartment manager
of an apartment complex to have the sign required by this section erected and maintained in
accordance with this section.
4.15.090 Inquiry list. {a) Contents. For every person who inquires about the
availability of a dwelling unit for rent, lease, let, or hire in person rather than by telephone,
letter, or the like, an inquiry Jist shaH be kept for every apartment complex of the following:
(I) The name, address, and telephone number of the person making the inquiry;
:2) The date of the inquiry; and
(3) The name of the person receiving the inq viry.
(b) Obtaining the information. Every owner, apartment rnanuger, or person acting on his
behalf who receives such an inquiry shaH make a reasonable attempt to obtain the information
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specified for the inquiry lisi and shall not dis~:our:1gc the inquirer from providing such information.
The person making the inquiry is under no duty to pro\'ide such informatiou.
(c) Inspection of list. The inquiry iist shall be made available to the city manager and
his designated representatives for inspection, copyi11g, or summarizing during regular business hours
upon request.
(d) Regulations. The regulations prescribed in section 4.) 5. I iO of this chapter shall apply
to the inquiry Jist.
4.15.100 'Records on aYailable dweUing units. (a) Contents. A list or record shall
be kept for ticry apartment complex of the dwelling units which arc currently being offered
for rent, lease, let or hire. The list or record shall contain the following information for each
such dwelHng unit:
(l) The date the dwelling unit became available for re.nt and the dnte it
was entered on i:hc list or record.
(2) The address or apartment number.
(3) A designation of its type, such Js a studio apartment, a one-bedroom
apartment, or the like.
(4) Any furnishings, appliances, and utilities supplied.
(5) The date it will be available for OCCIIpancv.
(6) The rental rate and term.
(7) The amount znd nature of any fees and deposits required.
(8) Restrictions on the number or type of tenants.
(9) Restrictions on the number or type of pets.
(1 0) Any condition precedent to its rental, such as a credit check, and the
estimated time required for fulfillment.
( 11) When the dwelling unit is no longer offered for rent, the date of such
withdrawal of the dwelling unit from the availability category.
(b) Sufficiency of the fCl"'rds. A ~eparate informational sheet on every dwelling unit being
offered for rent, lease, let, or hire hi not required if the cross-referencing system utilized enables
a person seekjng the information required under subsection (a) hereof to find it l~asily and without
confusion.
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(c) Inspection of records. All records to be kept under this section shall bt: made <IVailable
to the city or to any pl'rson for inspection, wpying, or summarizing during regular business
hours upon request. Before making said records :~vailablc for inspection, the apartment manager
or his agent may require the requesting party to sign the inquiry Jist, giving his name, his address,
his telephone number, the date, and a notation that he intends to inspect said records.
(d) Regulations. The regulations .lrcscribed in section 4.15.1 l 0 of this chapter shall apply
to the records on available dwelling units.
4.15.110 Regulation .. ~! for records. (a) Manner of keeping records. All apartment
complex records shall be typewritten, printed, or written in ink. No record shall be eradicated,
deleted, or rlestroyed in any manner for two years from the entry of the information.
(b) Entry of -formation. The information required on ;;~partment complex records shall
be entered on the record as soon as it is available.
(c) Retention and location of records. All apartment complex 1ccords shall be retained
for two years from the entry of the infom1ation and shall be given into the ~.~ustody of each
succeeding apartment manager of the apartment complex.
(u) Lucation of records. The apartl.--.ent complex records or a copy thereof shall be kept
readily available in every ren~al office for the apartment complex and in the place of business
of every apartment manager of !he apartment complex.
(e) Transportation of records. If the records on available dwelling units or a copy thereof
are not kept at the a)Jartment complex itself, then the inquiry list and that portion of the records
pertaining to dwelling units currently beiP'"' offered for rent, lease, let, or hire, or a copy thereof,
shall be taken to the apartment complex whenever an appointment is made there with, or a
dwelling unit is shown to, a possible prospective tenant.
(t) Attesting to accuracy. Upon request, the apartment manager or person acting on his
behalf shall attest to the accuracy of any copy or summary of the records by signing and dating
such copy or summary. If he cannot so attest, h-:; shaH provide sufficient infom1ation and
opportunity to the other person to conect the copy or summary for his signature.
(g) Persons responsible for records. It shall be the duty of every owner and apartment
manager of an apartment complex to compile and maintain the a'Partment complex records in
accordance with this chapter.
4.15.120. Advertising rentals. It shall be unlawful for any owner, apartment manager,
or person acting on his behalf with intent, directly or indirectly, to advertise in any manner
that a dwelling unit in an apartment complex is available for rent, lease, let, or hire if such
advertisement is untnte or misleading and if it is known, or by the exercise of reasonable care
should be known, to be untrue or misleading.
4.15.130 Grounds for denial, probation, and penalties. Notwithstanding the provisions
of chapter 4.04 of this title, with regard to the licenses described in this chapter, an application.
may be denied, a proba.tion~ry license may be approved, and a licensee may be subjected to
a penalty only as specified in this section.
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(a) Business license; nonrcgulatory apartment manager license. With regard to a business
license for an apartment complex and a nonregulatory apartment manager license, the foliowing
causes arising from the ads or omissions of the applicant or Jlccnsce are re1evant:
(1) Failure to meet any condition prtcedent to the issuance of a license.
(2) Fraud, misrepresentation, or false statement in applying for a new or renewed
license.
(3) Failure to meet the penalty imposed, or to pay the hearing fee assessed, by
the appropriate city officer after a license hearing.
(b) Regular apartment manager license. With regard to a regular apartment manager license,
as distinguished from a nonregulatory apartment manager license, the following causes arising
from the acts or omission~ of the applicant or licensee, or of his agent or employee, whether
01 not he was licensed at the tjme, are relevant:
(l) AU causes specified in subsection (a) of this section.
(2) Any violation of this code relevant to t.he licensed ousiness or occupation.
(3) A conviction of any crime within the past five years where the trait shown
is inconsistent with carrying on the business or occupation of apartment
managing for the benefit of the pubJic.
(4) A final judgment by a court or '1~tmcy of competent jurisdiction within the
past five years wherein it was. shown that the business or occupation of
apartment managing was carried on in an unlawful, unjust, or inequitable
manner or in a manner constituting a menace to the health, safety, or general
welfare of the public, whic~: shall include but not be limited to the following:
(a) Disregard or violatiori of any of the tenns and provisions of federal or
state Jaw pertah1ing to discrimination.
(b) Disregard or violation of any of the terms and provisions of state law
pertaining to the rental, leasing, letting, or hiring of real property, such
as the maintenance of the physical condition of an apartment complex
and the return of security deposits and cleaning deposits.
(5) Having outstanding an unpaid final court judgment rendered in connection
with the business or occupation of apartment managing, unless:
(a) The court ordered the payment of the judgment in installments and the
payment of any installment is not in default, or
(b) The judgment debtor gives satisfactory proof of his wiJHngness and ability
to pay the judgment as well as his financial responsihiiity for any future
judgrnen•
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(6) The adjudication of insanity or mental illness or the voluntary commitment
or admission to a hospital for a mental illness until restoration to, or
dt~claration of, sanity or mental competence.
• •. 'C ~-~~ Compliance stp,ndards. The city manager is authorized to devise, promulgate,
and enfcrce r.~a~~!:;,ole standards for compliam:e with the wording and intent of the various
provisions of t tis chapter, including but not limited to the following areas:
{l) The r.umbcr, placement, ;.md mainienant·e of informational signs.
(2) The n:anncr of keeping records.
(3) The amount of information necessary to be kept in the records, including
th• conditions precedent to the rentai of a dwelling unit.
( 4) The conditions under which records on available dweliing units or portions
thereof need not be made available for inspection by the public.
(5) The conditions under which the inquiry list may be made avaiJable by the
city to other persons.
(6) The conditions under which records must b~ brought to the city for inspection.
(7) Continuous ad\'erHsing.
Said stnndards shall be approved by the human relations commission and adopted hy resolution
of the cou neil."
SECTION 2. This ordi11ance shall become effective on July I, 1973; provided, however,
prior to the effective date of this ordinance, the city manager and city staff hereby are authorized
to i.ake whatever procedural steps are ne<;essary, including the issuance of licenses with an effective
date of July I, 1973, to implement this ordinance on July l, 1973, in an orderly fashion.
INTRODUCED: March 19, 1973
PASSED: April 2, 1973
AYES: =-~-
NOES:
--NONE ______ _
ABSENT: NONE
Comstock, Henderson, Pearson, Rosenbaum, Seman
Beahrs, Berwald, Clark, Norton
I hereby certify that the above
vote is correct, as recorded in 0RP'fr= /)_) 0 ~ Vol~~-.. ~ ~ '-(_.l131 ~~ ~ Ann . Tanner
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~fuyot City Clerk
Hay 13,1974
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City Mfulage{ /
APPROVED:
-;#~.It:~
City Treasurer
APPROVED:
df!i:~.~(Jl/~I. ?Ztt
City Controtfcr
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