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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: > .~,_i(c; p' <.) '7 'l I C tJ .. J·7 . 1 0 .;-I . . . .:;:I' • • (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. -2- • • (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: -3- • • (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. -4- • • 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 -5· • 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. -6- . . . • • (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. -7- • • (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• -8- • • (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 ~9- ~fuyot City Clerk Hay 13,1974 • City Mfulage{ / APPROVED: -;#~.It:~ City Treasurer APPROVED: df!i:~.~(Jl/~I. ?Ztt City Controtfcr I • -10- (i" >. <_/ ... ;_ ·-.-~· ~<~~~~--tt:~­ /.-_/~,/ .f ~~ .._,_ ~.iZ-'--t./', _ _.. _ __, __ __....