Chapter 6.08
RENTAL HOUSING LICENSES AND OWNER-OCCUPIED GROUP HOUSE REGISTRATIONS*
Sections:
6.08.040 License applications.
6.08.050 License requirements.
6.08.060 License changes—Transferability of license.
6.08.090 License denial, suspension or revocation.
6.08.100 Appeals from license denial, suspension or revocation.
6.08.110 Reinstatement of license.
6.08.120 Owner-occupied group house—Application and registration.
* Legislative History: M.C. 1961, Art. 14, §§ 2—7; Ord. No. 1985-48, 9/9/1985; Ord. No. 1986-45, 11/10/1986; Ord. No. 1987-59, 11/16/1987; Ord. No. 1990-30, 6/11/1990; Ord. No. 1992-23, 6/14/1993; Ord. No. 1994-35, 12/12/1994; Ord. No. 1995-43, 12/11/1995; Ord. No. 1999-41, 1/1/2000; Ord. No. 2002-26, 7/29/2002.
6.08.010 Purpose and policy.
There are numerous dwelling units in the City that are rented, leased, or otherwise let to persons other than the owners of the dwelling unit. The City Council has the gravest responsibility for the protection of the health, safety, and welfare of all of the citizens of the City and of the occupants of these premises. It is declared to be the policy of the City that rental facilities and premises in the City shall be licensed and regulated in such a manner as to ensure the protection of the health, welfare, and safety of those persons residing in or visiting such premises, and that such licensing and regulation shall be as set forth in this chapter. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-200)
6.08.020 License required.
A. Rental Housing License. The legal owner of record of a rental facility shall obtain a rental housing license before operating a building or dwelling as rental housing.
1. The rental housing license shall contain the name, street address, email address, telephone number and emergency contact information for the property owner and property manager or agent authorized to act for the owner on all matters relating to the rental facility. The rental housing license also shall specify the exact location of the rental facility for which the license is issued. If the property owner is a corporation, limited liability company, or other entity, the entity must be properly qualified to do business in Maryland under State law. All corporate, limited liability company, or other entity property owners and all non-Maryland resident property owners shall certify to the City the name, street address, email address and telephone number of an agent who resides in Maryland and is qualified to accept notices and service of process on behalf of the property owner and must keep such information current. Property owners and all property managers or agents who are authorized to act on behalf of the property owner on emergency matters relating to the rental facility shall provide the City with emergency contact information and shall keep such information current.
2. The following types of rental housing licenses shall be issued:
a. Annual Rental Housing Licenses. Annual rental housing licenses shall be issued for a term of one calendar year expiring on December 31st of the calendar year.
b. Biennial Rental Housing Licenses. If the rental facility is well-maintained a biennial rental housing license may be issued for a term of two calendar years, expiring on December 31st of the second calendar year.
i. To be eligible for a biennial rental housing license, no more than five minor violations of Chapter 6.12, Property Maintenance Code, may exist in the rental facility at the time of the licensing inspection and all violations identified by the Code Official must be corrected by the established abatement date. Examples of minor violations include, but are not limited to, small wall cracks, slow faucet leaks, and defective bathtub caulking.
ii. A biennial rental housing license shall not be issued if three or more valid complaints about the condition of the rental facility or any rental unit are filed with the City during the prior license term; serious violations of Chapter 6.12, Property Maintenance Code, are identified by the Code Official in the rental facility or any rental unit during prior license term; the property owner or property manager of the rental facility fails to respond to valid maintenance requests in a timely manner; or the Code Official determines that there is other good cause for declaring a rental facility to be ineligible for a biennial rental housing license.
c. Temporary Rental Housing Licenses.
i. A temporary rental housing license may be issued for a newly constructed or partially renovated rental facility that is to be occupied and the property owner has obtained a certificate of occupancy or certification from Montgomery County Department of Housing and Community Affairs confirming that the individual rental units meet all life safety codes and complied with all other applicable laws. A temporary rental license shall be issued for a six-month term, expiring on June 30th and December 31st of the calendar year.
ii. A temporary rental license may be renewed if the property owner has shown good cause why the construction, repairs or renovations to the rental housing facility have not been completed.
iii. All requirements of this chapter for issuance of an annual or biennial rental housing license shall apply to the issuance of a temporary rental license except that the rental facility shall not be required to have passed a licensing inspection for compliance with Chapter 6.12, Property Maintenance Code.
B. Exemptions. The following shall not require a rental housing license:
1. Government buildings (for example, City, County, M-NCPPC, school, State, Federal, or post office);
2. Hospitals, nursing homes, convalescent homes, hospices, and other health care facilities and residences;
3. Churches, synagogues, parsonages, rectories, convent and parish houses, and other religious facilities;
4. Portions of residential buildings used for home occupations or home day care;
5. Hotels, motels, tourist homes, and bed and breakfast facilities;
6. Private schools and colleges and school dormitories. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-201)
6.08.030 License fees.
A. Each owner of a rental facility shall pay an annual rental housing license fee per rental unit in the rental facility for an annual rental housing license, a biennial rental housing license fee per rental unit in the rental facility for a biennial rental housing license or a six-month rental housing license fee per rental unit for a temporary rental housing license.
B. Rental housing license fees shall be due and payable 30 calendar days after billing. License fees are nonrefundable and are not prorated in the event that a license is issued after January 1st of a calendar year or the number of rental units in a rental facility decreases during a calendar year.
C. License Fee Increases.
1. Effective on January 1st of each year all license fees shall increase by an amount equal to the percent change in the Consumer Price Index (“CPI-U”), or any successor or replacement to this CPI, rounded to the nearest dollar. All annual computations shall be based on the prior nonrounded figures; only the fee charged shall be rounded. The percent change in the CPI-U shall be computed for the 12-month period ending in September of each year from the average CPI-U for the 12-month period ending in September of the previous year. If there is no increase in the CPI-U, then the license fee shall remain the same.
2. Fees shall not be increased for the holder of a license during the time that license is valid, but nothing contained herein shall be construed to limit the amount of any fee due and payable at the time of renewal or reinstatement. If the number of rental units in a rental facility increases during the license term over the number specified in the application, then, within 15 calendar days of such increase, the license application shall be amended and any additional amount of license fee required by reason of such increase shall be paid.
D. Penalty for Late Payment of Fees. The license fee shall be subject to a 2% penalty per month, or any portion thereof, beyond the date the fee is due and payable. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-202)
6.08.040 License applications.
A. Application for a new rental housing license or the renewal of an existing rental housing license shall be made by or on behalf of the property owner on a form provided by the City containing such information as necessary to administer and enforce the provisions of this chapter.
B. Applications for rental housing licenses for previously unlicensed rental housing facilities shall be submitted prior to an announcement of the availability of the rental facility or occupancy of the rental facility.
C. Applications for the renewal of an existing rental housing license shall be submitted prior to the expiration of the existing rental housing license issued for the rental facility. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-203)
6.08.050 License requirements.
A. Prior to the issuance of a new rental housing license or the renewal of an existing rental housing license, the following criteria shall have been met:
1. License application form must be completed in its entirety and submitted to the City by the established deadline.
2. All rental housing license fees, fines and late payment charges related to the rental housing license and due to the City must be paid in full.
3. The property owner or the management agent must have a valid Takoma Park landlord certification. Certification must be renewed every three years or upon a change in the ownership or management of the rental housing, whichever occurs earlier.
4. The license applicant has complied with all applicable provisions of Annotated Code of Maryland, Title 6, Subtitle 8, Reduction of Lead Risk in Housing, as amended, or has submitted evidence that the rental facility is not subject to the provisions of that subtitle.
5. Licensing Inspections.
a. Currently Licensed Rental Facilities. Before the expiration of the license term, all interior and exterior areas of the rental facility and each rental unit of the rental facility shall be inspected by the City or its agent for compliance with Chapter 6.12, Property Maintenance Code (“licensing inspection”), and there must be no uncorrected violations of the Code.
b. New Rental Facilities. Before a rental housing license shall be issued for the initial rental of a rental facility or any rental unit, all interior and exterior areas of the rental facility and each rental unit of the rental facility shall be inspected by the City or its agent for compliance with Chapter 6.12, Property Maintenance Code, and there must be no uncorrected violations of the Code. (Ord. 2013-25 § 1, 2013)
6.08.060 License changes—Transferability of license.
A. The applicant for or the holder of a rental housing license shall notify the City in writing within 15 calendar days of any transfer of ownership of the rental facility or change in the street address, telephone number and email address of the property owner and any change in assigned property manager or agent or designated emergency contact authorized to act for the owner on matters relating to the rental facility. The City may reject an application or suspend or revoke a license if the applicant or licensee does not notify the City as required by this section.
B. Any person who takes over the ownership or operation of a licensed rental facility may transfer the license for the unexpired portion of the term for which the license was issued by applying to the City within 15 calendar days after taking ownership of the rental facility or assuming responsibility for the management or operation of the rental facility and paying a license transfer fee of $75.00.
C. Whenever the ownership of a rental facility is transferred, the transferee shall promptly notify all tenants of the rental facility of the name, street address, email address and telephone number of the transferee and of any property manager, agent or emergency contact authorized to act for the transferee on matters relating to the rental facility. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-204. Formerly 6.08.050)
6.08.070 Display of license.
The owner of a rental facility shall display the rental housing license in a common area in each rental facility during the entire period the rental housing license is effective. If the rental facility does not have an appropriate public place on the premises for display of the rental housing license, then a copy of the rental housing license shall be available from the owner or the owner’s agent upon request. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-205. Formerly 6.08.060)
6.08.080 Inspections.
A. In addition to the licensing inspection required pursuant to Section 6.08.050, License requirements, the City or its agent may inspect a rental facility or rental unit at any time or times if the City or its agent receives a complaint or has reasonable grounds to believe that the rental facility or rental unit does not comply with Chapter 6.12, Property Maintenance Code, and all applicable laws (“complaint inspection”).
B. As a condition of receiving and maintaining a rental housing license under this chapter, a property owner must agree to:
1. Allow access to the City or its agent for any inspections required under this chapter; and
2. Provide written notice of the intent of the City or its agent to inspect the rental unit in accordance with the provisions of Section 6.16.110, Entry, to any affected tenant of the rental facility of the intent of the City or its agent to inspect the rental unit.
C. If an inspection indicates that any rental facility or rental unit does not comply with Chapter 6.12, Property Maintenance Code, and all applicable laws, the City may deny, suspend or revoke the license or proceed with enforcement under applicable provisions of law. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-206. Formerly 6.08.070)
6.08.090 License denial, suspension or revocation.
A. The City Manager may deny, suspend or revoke a rental housing license for all or any unit or part of any rental facility at any time if the property owner or agent of the property, after 15 calendar days’ written notice, does not eliminate or initiate bona fide efforts to eliminate violations of this title or other applicable laws. Revocation, denial or suspension of a license is in addition to, and not a substitute for, any other penalties provided for the violations.
B. Upon making a determination that a license should be denied, suspended or revoked, or that any application, including an application for license issuance or license renewal, should be denied, the City Manager shall issue a written notice of the action setting forth the specific reasons for the action and serve the notice on the property owner or agent of the property as provided in Sections 1.04.120(C) and (D).
C. A license may be suspended immediately upon written notice to the property owner or agent of the property if the City Manager determines that there are violations of Chapter 6.12, Property Maintenance Code, or other applicable law in the rental facility or in any rental unit which pose a serious threat to the life, safety, property, or health of the tenants of the rental facility (“serious violations”).
D. When a rental housing license has been suspended or revoked or an application for a rental housing license has been denied, it shall be unlawful for the property owner of the rental facility to rent, lease, let for occupancy, or use any rental unit or space in the premises then vacant or becoming vacant until a rental housing license has been issued, reissued or reinstated.
E. Upon the denial, suspension, revocation or expiration of a rental housing license, notice, provided by the City, shall be posted and prominently displayed in the rental or management office of the rental facility, on the door of the affected rental unit or units, or in a public place on the premises, as the City Manager determines. The notice shall state substantially as follows:
RENTAL OR OCCUPANCY OF ANY UNIT IN THIS BUILDING NOW VACANT OR BECOMING VACANT AFTER THE DATE OF THIS NOTICE IS UNLAWFUL UNTIL A RENTAL HOUSING LICENSE HAS BEEN OBTAINED FROM THE CITY OF TAKOMA PARK AND IS DISPLAYED ON THE PREMISES.
Date of Notice: __________________.
It is unlawful for any person to remove such notice until a license has been obtained or reinstated.
F. If a rental housing license is denied, revoked or suspended and the City Manager determines that there are serious violations of Chapter 6.12, Property Maintenance Code, or other applicable law in the rental facility or in any rental unit, then the City Manager shall require the property owner, property manager or agent to give any tenants occupying the affected rental facility or the affected rental unit or units two months’ written notice to vacate. The two-month notice must begin on the first day of the month after service of the notice on the tenant. In addition, a copy of the notice must be delivered to the City Manager. It is unlawful for any property owner, property manager or agent to penalize any tenant who vacates a rental unit under this provision prior to the expiration of the two months’ written notice to vacate by charging the tenant rent for any period after the tenant vacates the rental unit or by other fees, penalties, or deductions from the tenant’s security deposit. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-24 § 2 (part), 2003/Ord. 2003-7 § 1 (part), 2003: prior code § 6-207. Formerly 6.08.080)
6.08.100 Appeals from license denial, suspension or revocation.
A. Any owner or agent of a rental facility aggrieved by an action of the City Manager under the provisions of Section 6.08.090 may, within 15 calendar days after service of the written notice of the action, appeal the action to the Commission on Landlord-Tenant Affairs by filing a written notice of appeal with the Commission. An appeal does not stay the City Manager’s action unless the Commission stays the action for good cause.
B. Within 30 calendar days after a notice of appeal is filed, the Commission shall conduct a hearing, at which the owner or agent aggrieved shall have an opportunity to be heard. The Commission may summon all witnesses it deems necessary and/or require the production of relevant documents and records. Failure to comply with the summons is a violation of this chapter.
C. Commission hearings shall be conducted in accordance with the procedures set forth in Chapter 6.24, Commission on Landlord-Tenant Affairs, and the Commission’s regulations and rules of procedure, as applicable.
D. Within 30 calendar days after the hearing, the Commission shall reverse, modify or affirm the action appealed. The Commission shall issue its opinion and order in writing and provide a copy to the owner or agent aggrieved. The Commission may extend the time for any hearing and the issuance of its opinion and order.
E. Any person aggrieved by the opinion and order of the Commission may appeal to the Circuit Court for Montgomery County within 30 days from the date of the Commission’s opinion and order. The procedures for an appeal of a Commission opinion and order shall be governed by Title 7, Chapter 200 (Judicial Review of Administrative Agency Decisions), of the Maryland Rules, as amended. An appeal does not stay enforcement of the Commission’s opinion and order unless the court grants a stay. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-24 § 2 (part), 2003: prior code § 6-208. Formerly 6.08.090)
6.08.110 Reinstatement of license.
A rental housing license that has been denied, suspended or revoked shall be issued or reinstated upon a showing that the conditions and violations which led to the denial, suspension or revocation have been corrected and upon the payment of any license or other fees then due. In the case of a license suspension or revocation, a reinstatement fee of $250.00 also shall be paid. (Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-24 § 2 (part), 2003/Ord. 2003-7 § 1 (part), 2003: prior code § 6-209. Formerly 6.08.100)
6.08.120 Owner-occupied group house—Application and registration.
A. Owner-occupied group houses must be registered with the City within 30 calendar days of operating the facility as a group house.
B. Application for a new certificate of registration or the renewal of an existing registration shall be made by the owner occupant on a form provided by the City containing such information as necessary to administer and enforce the provisions of this chapter.
C. Upon receipt of an application for registration and a $50.00 registration fee, the City shall inspect the property to verify that no serious life safety code violations exist prior to the issuance of a certificate of registration. Examples of serious life safety violations include, but are not limited to, lack of egress from sleeping rooms, inoperative smoke detectors, and the lack of essential utilities such as heat, water and operable sanitary facilities. The owner occupant will be given a reasonable opportunity to make required corrections. All identified life safety code violations must be corrected by the established reinspection date set by the Code Official.
D. A certificate of registration will be issued to the owner occupant upon verification that identified life safety code violations have been corrected.
E. The certificate of registration shall remain valid for a term of three calendar years, expiring on December 31st of the third calendar year. (Ord. 2016-23 § 1, 2016/Ord. 2013-25 § 1, 2013/Ord. 2006-50 § 1 (part), 2006: Ord. 2003-24 § 2 (part), 2003/Ord. 2003-7 § 1 (part), 2003: prior code § 6-210. Formerly 6.08.110)