§ 150.10 RENTAL DWELLING LICENSING CODE.
   (A)   Inspection and licensing of rental dwellings.
      (1)   Rental dwellings license. No person may operate, let or cause to be let, a rental dwelling unit without first having obtained an operating license or temporary permit to do so from the city as hereinafter provided.
         (a)   The owner of a rental dwelling unit must obtain a temporary permit if he, she or they have not received an operating license. There is no fee necessary for a temporary permit. The City Building Official may waive the need for an inspection at his or her discretion. A temporary permit is valid until an operating license is obtained or for a period of time after its issuance as authorized in its issuance by the City Building Official, whichever is earlier. In no case shall a temporary permit be issued for a period longer than 24 months, subject, however, to the enforcement officer’s authority to extend the permit expiration date in those cases as the enforcement officer/Building Official deems appropriate in his or her sole discretion.
         (b)   Each operating license shall be valid for a period of five years (60 months) and shall expire at the end of the five years (60 months).
         (c)   A license renewal application shall be filed at least 60 days prior to license expiration date, unless the city has already renewed that license based upon a scheduled inspection conducted pursuant to division (A)(3)(a) below.
      (2)   Permit and license exemption.
         (a)   The owner of a rental dwelling unit is exempted from the permitting and licensing requirements of this section if the renter of the dwelling unit is related to the owner as a parent, child, sibling, grandparent, grandchild, stepparent, stepchild, step-grandparent or step-grandchild and the owner files an affidavit with the city, stating that the renter is one of these relations. The affidavit required in this division (A)(2)(a) must also state the address of the dwelling and must be renewed at least every five years (60 months).
         (b)   The owner must notify the city in writing within 30 days of this exemption being lost because the renter is not related to the owner as one of the above referenced relations.
      (3)   Rental dwelling inspections. No operating license may be issued or renewed unless the city determines, following an inspection conducted pursuant to this section, unless otherwise waived by the city enforcement officer for good cause or as otherwise determined by the officer in his or her discretion, that the rental dwelling unit and its premises conform to the Housing Maintenance Code (“HMC”). As more specifically provided below, the enforcement officer and his or her agents may cause inspections, follow up inspections and reinspections on rental dwelling units on all classes of property within the city on a scheduled basis, and on rental dwelling units or owner occupied residential units on all classes of property when reason exists to believe that a violation of an applicable subdivision of the HMC exists, has been or is being committed.
         (a)   The city enforcement officer and his or her agents are authorized to contact owners, tenants and managers of rental dwellings to schedule inspections of rental dwellings at reasonable times. They are also authorized to conduct those inspections once scheduled. These scheduled inspections will be conducted to determine whether the unit and its premises conform to the HMC so as to inform the city’s decision of whether to issue an operating license. The authority to schedule and to conduct these inspections is available even if the owner or owner’s agent holds a temporary permit, and without regard to whether the owner or owner’s agent has filed an application for an operating license.
         (b)   In addition, except as herein provided above, upon receipt of a properly executed application for an operating license, the enforcement officer shall cause an inspection to be made of the premises to determine whether the structure is in compliance with the HMC. Inspections performed pursuant to the authority in divisions (A)(3)(a) above or (A)(3)(c) below are hereinafter described as “Licensing Inspections”.
         (c)   In addition, the city enforcement officer and his or her agents are authorized to conduct inspections on rental dwelling units or owner-occupied residential units on all classes of property when reason exists to believe that a violation of an applicable subdivision of the HMC exists, has been or is being committed. A complaint or complaints from a tenant of a rental dwelling unit shall be an adequate basis for a reinspection of a rental dwelling unit.
         (d)   To increase the awareness by owners of the likely timing of requested inspections and to conserve public resources, the city enforcement officer may schedule and conduct inspections pursuant to division (A)(3)(a) above according to the area of the city in which the unit is located, dividing the city into zones and endeavoring to perform inspections pursuant to division (A)(3)(a) above in one zone before beginning them in a different zone.
         (e)   If a structure or rental dwelling unit is not in compliance, one or more follow up inspections or reinspections may be conducted to verify that conditions and any corrections conform to the provisions of the HMC.
         (f)   When the basis for the inspection pursuant to this section is information observed or obtained during a licensing inspection, the reinspection or follow up inspection shall be conducted on a scheduled basis.
         (g)   Owners of rental dwelling units shall report to the city the full names, telephone numbers and addresses of the principal tenant of all rental dwelling units under their ownership or control, and update information as needed to ensure that it is accurate and current.
         (h)   When scheduling licensing inspections pursuant to this section, the city enforcement officer or his or her agents will seek the consent of the owner of the property (if not already received) to inspect those areas outside of rental dwelling units that are not accessible to the general public (including any internal rooms that are inaccessible to the public, such as storage or mechanical rooms) and to unrented dwelling units, and the consent of the primary tenant of the rental dwelling unit (if not already received) to inspect that unit. If the property owner demonstrates to the satisfaction of the city enforcement officer or his or her agents that one or more tenants have consented in writing to the inspection of their units, individual contacts by the city with those tenants may be deemed unnecessary.
         (i)   If the city is unsuccessful in securing consent for an inspection pursuant to this section, the city shall seek permission from a judicial officer through an administrative warrant, for its enforcement officer or his or her agents to conduct an inspection. Nothing in this Code shall limit or constrain the authority of the judicial officer to condition or limit the scope of the administrative warrant.
         (j)   The scope of a licensing inspection shall be limited to what is necessary to determine in accordance with this division (A)(3)(j), whether the unit and its premises conform to the HMC. This shall not preclude the enforcement officer from relying upon observations from a licensing inspection in seeking one or more of the remedies provided in division (B) below.
         (k)   A licensing inspection must be scheduled during ordinary business hours (or as otherwise arranged with the owner or tenant). Owners and their agents and tenants may, at their option, request that licensing inspections above take place only when they are present, so long as the request identifies at least one date or time within the two weeks following the date of the request when the requesting party agrees to be present.
         (l)   During inspections conducted pursuant to an administrative warrant, photographs and video recordings may not be taken of areas inside the building, absent further court permission or consent of the tenant (for areas inside the unit) or the landlord (for areas inside the building but outside a tenant’s unit, and areas inside an unoccupied unit).
         (m)   Inspectors are not authorized to open containers, drawers or medicine cabinets, unless the containers, drawers or medicine cabinets are opened with the consent of the tenant (for areas inside the unit) or the landlord (for areas inside the building but outside a tenant’s unit, and areas inside an unoccupied unit). For purposes of this division (A)(3)(m), a medicine cabinet is a covered cabinet located in a dwelling unit’s bathroom.
         (n)   Inspectors are authorized to open cabinets (other than medicine cabinets) or closets only when it is reasonably necessary in order to inspect for the existence of one or more conditions that violates the HMC, or when the cabinets or closets are opened with the consent of the tenant (for areas inside the unit) or the landlord (for areas inside the building but outside a tenant’s unit, and areas inside an unoccupied unit).
         (o)   The information regarding the condition of the unit or its occupants that inspectors retain after recording it in any inspection logs or forms shall be limited to descriptions of conditions constituting a violation of the HMC. Inspectors may record a list of conditions that the landlord or tenant is encouraged to repair or change but which do not constitute a violation of the HMC, if that list is not retained by the inspector or city but is instead simply given to the landlord or tenant.
         (p)   The city may not upload to a GIS system any data regarding the results of inspections conducted pursuant to this section.
         (q)   The city will not share information regarding the condition of the unit or its occupants obtained through inspections conducted pursuant to this section with any current member of the City Police Department or any law enforcement agency of another jurisdiction, or enable their discovery by the person or agency, unless:
            1.   The disclosure is required by law;
            2.   The disclosure to the person or agency is needed to abate an active or inactive methamphetamine lab, mistreatment of one or more minors in violation of M.S. §§ 609.377 or 609.378, as they may be amended from time to time, mistreatment of one or more vulnerable adults in violation of M.S. §§ 609.23 through 609.233, as they may be amended from time to time, or mistreatment of one or more animals in violation of M.S. § 343.21, as it may be amended from time to time; or
            3.   If an owner or occupant of a unit has made an express or implied threat of bodily harm, causing the inspector to be concerned for his or her welfare, and the disclosure is made for the purpose of enabling one or more law enforcement officers to accompany the inspector in the completion of the inspection or the full performance of his or her duties.
      (4)   Inspection not required. Inspection for the issuance or renewal of a license may be waived by the city if the owner of a dwelling unit proves that within the previous 12 months the dwelling unit passed an inspection required by the city, state or federal regulations that is at least as stringent as the inspection required under this section. The city has sole discretion to determine when an inspection program is at least as stringent as the inspection required under this section. Inspections conducted as the result of a complaint made to the city may not be waived under this provision.
      (5)   Application contents. Owners of one or more rental dwelling units who have not yet received a temporary permit or operating license are responsible for applying with the city for either a temporary permit or an operating license. Before any portion of a property is used as a rental dwelling unit, the owner must first secure either a temporary permit or an operating license. With either application, the owner must supply:
         (a)   Name, address and telephone number of dwelling owner, owning partners if a partnership, corporate officers if a corporation;
         (b)   Name, address and telephone number of designated resident agent, if any;
         (c)   Name, address and telephone number of vendor, if the dwelling is being sold through a contract for deed;
         (d)   Legal address of the dwelling;
         (e)   Number of dwelling units within the dwelling;
         (f)   At least one emergency telephone number; and
         (g)   The names, telephone numbers and addresses of principal tenants, if any, are required in division (A)(3) above.
      (6)   Following acquisition. A new owner must register a newly acquired rental residential property within ten days after acquiring it, by applying for either a temporary license or an operating license. The enforcement officer must be notified of any address change within ten days.
      (7)   Administrative charge. Failure to obtain either a temporary permit as required by this section, or an operating license, will subject the owner of a dwelling unit to an administrative service charge up to $250.
      (8)   License and inspection fees. The license and inspection fees are charged at the time of the issuance of the respective license and are due within 30 days of the date of the invoice; in the cases of newly constructed residential unlicensed rental dwelling units, license fees are due upon issuance of the certificate of occupancy; in the cases of licensing periods of less than two years, license fees will be pro rated monthly. A license fee paid later than ten working days after the prescribed date is subject to an additional administrative service charge double the amount of the license. Once issued, a license is nontransferable and the licensee is not entitled to a refund of any license fee upon revocation or suspension, or transfer of ownership. License and inspection fees shall be as established by the City Council by resolution as adopted and/or modified from time to time.
      (9)   Resident agent required. An operating license may not be issued or renewed for a nonresident owner of rental dwelling units (one who does not reside within the city limits) unless the owner designates in writing to the enforcement officer the name, address and telephone number of his or her resident agent (one who does reside within a 50-mile radius of the city limits) who is responsible for maintenance and upkeep and who is legally constituted and empowered to receive service of notice of violation of the provisions of the city code and to receive orders or process pursuant to law. The enforcement officer must be notified in writing of any change of resident agent or agent address or telephone number change within ten days. This requirement may be waived if, in the enforcement officer’s determination, the owner not living within the city limits is nonetheless sufficiently accessible for the purposes of the HMC.
      (10)   Posting of permit or license. The current temporary permit or operating license of a multiple dwelling unit, or a legible copy thereof, must be conspicuously posted in the main entry way or a conspicuous exterior location of the respective multiple dwelling unit. In the case of one-family and two-family dwelling units, a legible copy of the current temporary permit or operating license must be given to the renter of each unit.
      (11)   License not transferable. A temporary permit or operating license is not transferable to another person or to another rental dwelling. Every person holding a temporary permit or operating license must give notice in writing to the enforcement officer within 72 hours after having legally transferred or otherwise disposed of the legal control of any permitted or licensed rental dwelling. The notice must include the name and address of the person succeeding to the ownership or control of the rental dwelling or dwellings. The person succeeding to the ownership or control of the rental dwelling or dwellings must obtain a temporary permit or operating license in order to continue operating the rental dwelling or dwellings. An inspection is not required to obtain this temporary permit or operating license unless the rental dwelling or dwellings have not been inspected within five years (60 months) of the transfer of ownership or control.
      (12)   Violation. Any person that maintains a rental dwelling unit without having either a valid temporary permit or a valid operating license, or permits new occupancy in violation of this subdivision, is guilty of a misdemeanor, and upon conviction is subject to a fine and imprisonment as prescribed by state law. In addition to, or in lieu of, charging a misdemeanor, the city may impose an administrative fee in an amount set in the city fee schedule. An administrative fee may be appealed pursuant to division (C) below. Upon the failure to appeal an administrative fee within the period established in division (C) below, the city may post the dwelling unit as illegal for habitation. Thereafter, the dwelling unit may not be occupied by anyone other than the primary homestead owner and that person’s immediate family until: the administrative fee has been paid; and a rental license is obtained or the city is satisfied that the dwelling unit will not be used as a rental dwelling unit. Each day of each violation constitutes a separate offense.
   (B)   Administration and enforcement.
      (1)   Administration and enforcement. The enforcement officer and his or her agents administer and enforce the provisions of the HMC. They may enforce the standards of the HMC through the licensing and inspection programs set forth in division (A) above and, where appropriate, through the powers set forth below.
      (2)   Authority. In the absence of a timely appeal under the HMC or any other applicable provision of law, the enforcement officer is the final authority in the determination of a violation under the HMC.
      (3)   License suspension and revocation. A temporary permit or operating license is subject to suspension or revocation by the City Council if the holder fails to operate or maintain permitted or licensed rental dwellings and units therein consistent with the provisions of the city code and the laws of the state. In the event that a permit or license is suspended or revoked by the City Council, or expires without renewal, it is unlawful for the owner or his or her duly authorized agent to thereafter permit any new occupancy of vacant or thereafter vacated rental dwelling units until a time as a valid license may be obtained or restored by the City Council.
      (4)   Compliance order. Whenever an enforcement officer determines that any rental dwelling unit, or the premises surrounding any of these, fails to meet the provisions of the HMC, the officer may issue a compliance order setting forth the violations of the code and ordering the owner, occupant, operator or agent to correct the violations. The compliance order must:
         (a)   Be in writing;
         (b)   Describe the location and nature of the violations of the HMC;
         (c)   Establish a reasonable time, not to exceed 90 days, for the correction of the violations.
            1.   When a violation of the HMC constitutes an imminent peril to life, health or property, an immediate and exact time for the correction of the violation constitutes a “reasonable time” for correction for purposes of this subchapter. When this is the case, no stay of proceedings in furtherance of action will be granted on appeal.
            2.   A reasonable time may be longer than 90 days if correction is not possible because of prevailing weather conditions or other mitigating circumstances as determined by the enforcement officer;
         (d)   Include information regarding the owner’s right to appeal the order and the procedure to be followed in filing such an appeal pursuant to division (C) below;
         (e)   State that in the event the violations are not corrected within the time set in the compliance order, the license may be suspended or that the necessary work may be performed by the city at the expense of the owner and that if the owner does not pay for the expense, the cost of the work will be assessed against the property; and
         (f)   Be served upon the owner or his or her agent or the occupant, as the case may require. The notice shall be deemed to be properly served upon the owner or agent, or upon any such occupant, if a copy thereof is:
            1.   Served personally;
            2.   Deposited in the U.S. Post Office addressed to the owner at his or her last known address with postage prepaid; or
             3.   Upon failure to affect notice by personal service or by mail, posted at a conspicuous place in or about the dwelling which is affected by the notice.
      (5)   Emergency cases. For purposes of division (B)(4)(c) above, situations which constitute an imminent peril to life, health or property include, but are not limited to the following:
         (a)   Heating systems that are unsafe as defined in § 150.28, due to burned out or rusted out heat exchanges (fire box); burned out or plugged flues; not being vented; being connected with unsafe gas supplies; or being incapable of adequately heating the living space;
         (b)   Water heaters that are unsafe as defined in § 150.28, due to burned out or rusted out heat exchanges (fire box); burned out, rusted out or plugged flues; lack of proper venting; being connected with unsafe gas supplies; or lack of temperature and pressure relief valves;
         (c)   Electrical systems that are unsafe as defined in § 150.28, due to dangerous overloading; damaged or deteriorated equipment; improperly tapped or spliced wiring; improper or overloaded fuses; expose uninsulated wires; distribution systems of extension cords or other temporary methods; ungrounded appliances in a hazardous condition;
         (d)   Plumbing systems that are unsanitary as defined in § 150.28, due to:
            1.   Leaking waste systems fixtures and traps;
            2.   Lack of a water closet;
            3.   Lack of washing and bathing facilities; and/or
            4.   Cross-connection of pure water supply with fixtures or sewage lines.
         (e)   Structural systems, walls, chimneys, ceilings, roofs, foundations and floor systems that are unsafe as defined in § 150.28;
         (f)   Refuse, garbage, human waste, decaying vermin or other dead animals, animal waste, other materials rendering it that are unsanitary as defined in § 150.28; and
         (g)   Infestation of rodents, insects and other vermin.
      (6)   Follow-up inspection. At the end of the period allowed for the correction of a violation specified in the compliance order, the enforcement officer shall make, or attempt to make, a follow up inspection of the premises to determine whether corrective actions have been sufficient to bring the violation(s) into compliance.
         (a)   If the premises are in compliance with the requirements of this section at the time of the follow up inspection, a license may be issued in accordance with the requirements of this section.
         (b)   If the enforcement officer determines that the violation(s) has not been corrected and the rental unit(s) has not been vacated, the enforcement officer shall suspend any existing license. The enforcement officer also may issue a citation or may file a formal complaint summoning the responsible party into court. The citation shall reiterate the charge and the ordinance section(s) violated. The city may also take action to correct violations under the provisions of division (B)(9) below.
         (c)   After a suspension, the property owner may pay a re inspection fee and request a re inspection and reinstatement of the license. If the enforcement officer determines that the violation(s) has been corrected and the rental unit(s) and building comply with HMC, the license shall be reinstated. Fees for a reinspection may apply as outlined in the city fee schedule.
      (7)   Execution of compliance orders by public authority. Upon the failure to comply with a compliance order within the time set therein, the rental unit(s) not being vacated, and no appeal having been taken, the criminal penalty established hereunder notwithstanding, the City Council may by resolution direct the enforcement officer to remedy the deficiency (deficiencies) cited in the compliance order. The cost of the remedy shall be a lien against the subject real estate and may be levied and collected as a special assessment in the manner provided by M.S. Chapter 429, as it may be amended from time to time. The action will not be taken, however, without a good faith effort on the part of the city to provide the property owner with advance notice of its intention to proceed with repairs and assessment of the costs of repairs to taxes.
      (8)   No warranty by city. By enacting and undertaking to enforce the HMC neither the city nor its Council, agents or employees warrant or guarantee the safety, fitness or suitability of any dwelling in the city. Owners or occupants should take whatever steps they deem appropriate to protect their interests, health, safety and welfare. A warning in substantially the foregoing language shall be printed on the face of the license.
   (C)   Appeals.
      (1)   Right of appeal. Any person aggrieved by a compliance order may appeal the compliance order to the City Council. The appeals must be in writing, must specify the grounds for the appeal, must be accompanied by a filing fee in cash or cashier’s check and must be filed with the City Clerk within ten business days after service of the compliance order. If an appeal is not filed within the timelines and in the manner specified herein, the enforcement officer’s decision shall be final. The filing fee is set by Council resolution. The filing of an appeal shall stay all proceedings in furtherance of the action appealed from, unless such a stay would cause imminent peril to life, health, property or public safety.
      (2)   City Council decision. Upon at least five business days’ notice to the appellant of the time and place for hearing the appeal, and within 30 days after the appeal is filed, the City Council or the individual or committee designated by the Council as the appeal body, must hold a hearing thereon, at which the applicant may appear and present evidence as to why the compliance order, or any portion thereof, should not be issued. If an individual or committee other than the City Council hears the appeal, it shall make a recommendation to the City Council. The City Council may reverse, modify or affirm, in whole or in part, the compliance order and shall order return of all or part of the filing fee if the appeal is upheld. The City Council or appeal committee or officer may postpone a meeting and hold hearing at a later date, not to exceed 60 days after the appeal is filed, when it is necessary to do so.
(Ord. 163, passed 7-1-2013)