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HomeMy WebLinkAbout1976-04-12 186 AD ORDINANCE186 AD Introduced by Coe1c110r Saucy, April 12, 1976 By Request CITY OF BANGOR (TITLE.) Control Be it ambdutd by US My CouuU of she Cih o(Bampor, m"mur THAT Chapter V of the laws and Ordinances of the City of Budget be mended by. the addition of Article 10 - Rent Control as hereinafter _ -.PYQ ideB�j CHAPTER V ARTICLE LO - MICIPAL TEST COMMI, Sec. 1 Preamble. The inhabitants of the City of Bangor declare that a serious public housing emergency exists. in Bangor, which has resulted in a shorts&;of rental housing a omodationa and abnormally high rents and Ns produced and will continue to produce serious threats to the public health, safety and general welfare of the citizens of Bangor unless residential rents are regulated and controlled. Sec. 2 Definitions. As used in this Article, unless the context btherwime specifies, the fallowing words or phrases shall have the following meanings 2.1 Board, The Rent Control Board established by Sec. 3 hereof. 2.2 Capital improvement. Any substantial rehabilitation, addition or improvement which appreciably adds to the value of the unit or prolong its life, or both, but not including ordinary repair, replacement, and maintenance. 2.3 Landlord. An, lesser,sublee r their agents, other person entitled to receive ants for the me of or occupancy of any rental unit. 2.4 Operating and Maintenance Expenses. The reasonable and necessary s expenses to a Landlord of providing services, as hereinafter defined, to a tenant in co ction with the see of or occupancy of any rental unit. 2.5 Rent. 'Rent" means the consideration, including any bonus, benefits or gratuity demanded or received for or in connection with the v occupancy of rental units or the transfer of a LeaseOf such rental unite. 2.6 Rental Mita. 'Rental units" m any building, structure, r part thereof, e land appurtenant tbegeto, Or soy other real or personal property rented or offered for rent for living or dwelling purposes, including houses, apartmente, rooming or boarding house units and other properties need toy living or dwelling purposes, together with all services c ected with the use Or occupancy of such property, except: (1) Rental units which'a governmental unit, agency or authority either: (a) sane or operates; or (b) fiamaCes or subsidizes, if the deposition of rent control would result in the ta cel Lation or withdrawal, by law, of such financing or subsidy; (2) Rental suits in cooperatives; (3) Rental units in any public institutiono college or school dormitory operated exclusively for charitable or educational purposes; or nursing or rest homes, not organized or operated for profit; (4) Rental unite containing no more than three (3) dwelling units, me of which is occupied by the owner thereof as the owners permanent residence; (5) Rental units, the construction of which Was ompleted on or after the effective date of this Article, or n structures converted into rental units covered by this Article on or after the effective date of this Article, shall be exempted from the provisions of this Article for a period of five (5) years following completion of the construction or conversion; 3.3 Personnel. The Board shall hire, with the approval of the City Manager such personnel as are needed to effectuate the purposes of this Article. 3.4 Powers and Cutles. 3.4.L The Board ehaLl be responsible for the carrying out of the provisions of this Article. (6) Rental units in hotels, motels, inns, tourist homes, and ramming or boarding bouses which are rented exclusively to transient &nests for a period of Less than twenty (20) consecutive days; (7) Written leases entered into before the effective date of this Article, which do not by their terms provide for Tent adjostmence. 2.7 Services. 'Services" me repairs, replacement, maintenance, painting, providing light, beat, hat and cold water, elevator service, window sMdes and screams, storage, kitchen, bath and Laundry facilities or privileges, janitor services, refuse removal, furnishings and other benefit, privilege or facility c connected with the use or occupancy of any rental unit. Services to a rental unit shall include a proportionate part of services provided to the common facilities of the building in which the rental unit La contained. 2.5 Tenant. Teases means a recent, subeera, les subleases, , r other person, entitled t use and occupancy of aqv rental unit. Sec. 3 Rent Control Board. 3.1 Establishment and Composition. The City Manager shall appoint, prior to the effective date of this Article, a board, known as the Rent Control Board, consisting of five (5) residents of the City. Two (2) of the members shall be landlords, two (2) of the members shall be tenants; and one (1) member shall be selected from the public at large who is neither a Concur n a Landlord, as those terms are defined herein. members of the Board stall serve at the pleasure of the City Ne`nager.. All appointments shall. be subject to the confirmation of the City Council. 3.2 Compensation. Members of the Board shall recompensation for their services but shall berreimbursed by the City for necessary expenses incurred in the performance of their dot We. 3.3 Personnel. The Board shall hire, with the approval of the City Manager such personnel as are needed to effectuate the purposes of this Article. 3.4 Powers and Cutles. 3.4.L The Board ehaLl be responsible for the carrying out of the provisions of this Article. 3.4.2 The Board shall Issue such orders and promulgate such policies, rules and regulations as will further the purposes of this Article or as specified herein. 3.4.3 The Board eha1L establish rules and procedures for Rent Adjustment Hearings consistent with the provisions of this Article. 3.4.4 The Board shall recommend to the City for adoption such ordinancess by-law may be necessary to carry out the purposes of thin Article. 3.4.5 The Board shall require the registration of all ental unite subject to this Article on farms approved by the Board and my charge a fee for each such registration. 3.4.6 The Board any asks such studies, conduct such hearings and obtain such information as deemed o ary in promulgating any regulation, rule o orders eager this Article or in administering and enforcing this Article and the regulations and orders promulgated !hereunder. 3.4.5 The Board shall have the power to collect frog any person who rents or offers for rest or acts as broker or agent for the Iental of any controlled rental unit any additional information, records, documents o reports relevant to a potential rent adjustment. Any such person who Is required to furnish information, produce records of documents, or make reports shall have the right to be represented by an attorney. Sec. 4 Adjustment of Rent. 4.1 maximum Rent. The maximum rent of a controlled rental unix shall be the rt in effect sixty (60) days prior o the effective date of this Article unless otherwise adjusted by the Board as herein provided. If n n in effect on that date, then the ms rent shaLL be the first ant charged thereafter, unless adjusted by the Board. If the maximum rent is not otherwise established, it shell be. established by the Board. 4.2 Change in Rents. The manximum tent fora controlled rental unit shall not be adjusted, orotherwise changed, by a landlord, tenant, or by agreement of both, rept pursuant to a decision of the Board and the provisions of this Article. 4.3 waaim,m Rent Adjustments. 4.3.1 The Board &hall make such adjustments, either upward or downward, Of the maximum rent for any controlled property as may be necessary to assure n that the rent for the unit is established ata level which yields to the landlord a fair net Operating income from such unit_ 4.3.2 The fallowing factors, among other relevant factors, which the Board by regulation may define, stall be considered in determining whether a controllQd rental unit yields a fair net operating Income : (a) Increases or decreases in property taxes; (b) unavoidable increases or any decreases in operating or meiaterence expenses: (c) capital improvement of the housing unit ds, distinguished from Ordinary repair, replace- ment and maintenance; (d) increases or decreases in living space, services, furniture, furnishings, or equipment: (e) substantial deterioration Of the housing units other than as a result of Ordinary wear and tear; (f) failure to perform ordinary reppiy, replacement and maintenance. 4.3.3 For the purposes of adjusting rents under the provisions of this section, the Board will promulgate, among other things, a schedule of standard rental increases or decreases for Improvement or deterioration In specific services and facilities. 4.3.4 The Board may refuse to grant a rent increase under this section, for the reason,fin=er of be. that the affected rental unit does not comply with the state sanitary code or any applicable municipal codes, ordinances or by-laws, and if it determines that such lack of compliance is due to the failure of the landlord to provide normal and adequate repair and maintenance. The Board may refuse to grant a rent decrease under this section if it determines that a tenant is in arrears in payme at of rent. 4.4 Hent Adjustment Hearings, 4.4.1 Gereral powers. The Board shaLl have the power to adjust the rent for attolled ental unit upon receipt of a petition forAdjuetmeat filed by the landlord or a tenant of such unit, o n its own initiative as set forth below in Section 4.4.3. 4.4.2 petitions. A landlord shall petition with notice, in writing, to the Board and the tenant, if any, of the amonaof any proposed rent increase for ental unit. A tenant shalt petition fora rent adjustment by giving notice, in writing, to the Board and the landlord of any proposed rent decrease for a rental unit. petitions shall be signed by the petitioner, or his designated agent, and glow 11 contain, on a form approved by the Board, at least the following information: (a) a statement of the rent on amonthLy bea Ls currently to effect for the rental unit' (b) the annual of the proposed increase or decrease; (c) a List of the petitioner's justifications for the proposed increase or decrease with Specific reference to the factors set forth herein to Section 4.3.2; and (d) such additional information as the Board by its regulations my require. 4.4.3 Actions Initiated by the Board. The Board may, at its discretion, initiate a petition on behalf of a tenant or tenants, where it appears to the Board that the tent being paid for the rental unit to question exceeds the uaxfaum rent, or where it appears to the Board that the rent being paid exceeds the fair net operating incense allowable to the Landlord. The Board shall give written notice of the proposed adjustment to the landlord and tenant affected by the proposed adjustmeat. Each party eM11 have the right to request a hearing in accordance with the procedures set forth in Section 4.4.4 below. 4.4.4. Rent Adiustment Hearings (I) The Board SM11 consider an adjustment of rent for a controlled rental unit upon recipet of a petition for adjustment filed by the landlord a tenant of such unit o upon its own initiatives The Board shall Immediately notify the landlord, if the petition was filed by the tenant, or the tenant, 1f the petition was filed by the landlord, of the receipt of such petition and of the right of either party to request a hearing. Either party shall have twenty (20) days in which to request a hearing. Tf a hearing is requested, the hearing shall be conducted before one or more members of the Board prier to the decision by the Board to grant or refuge a rent adjustment. Adequate notice of the time and place of the hearing shall be furnished in writing to the landlord and tenant. The Board $hall hold the hearing within thirty (30) days of the request for hearing by either party. The Board .my consolidate petitions relating to rental unite in the me building, and all such petitions may be considered in a single hearing. In the event no request for a hearing is received by the Board, the Board My elect to hold a hearing or, in the alternative, enter a decision without a hearing based on the petition before it and such further information the Board may require of the petitioner. (2) The maxima rent shalt be presumed to yield the fair net operating income to the landlord. The party Initiating the rent adjustment hearing shall have the burden of overcoming this preemption. (3) The final decision of the Board shall be in writing and shall clearly state the reasons for the action taken. Copies of the decision shall be furnished to ,a11 Interested parties. 4.4.5 Limitations of Petitions for Individual Adjustments. Net - withstanding any other provisions of this Article, the Board my, without holding a hearing, refuse to adjust the maximim rent of a individual rental unit if a Fearing has been held with regard to the maximun rent of such rental unit within the preceding twelve (12) months, unless there has been'a significant change of circumstances with regard to said rental unit erne the Prior hearing. Sec. 5 Judicial Review. A" person who is aggrieved by any action, regulation or order of the Board may file a complaint against the Board In the District Court having juris- diction over the area in which the subject rental unit is located and thereupon a order or notice shall be issued by each Court and served on the Board as provided in the case of a civtl,actioa. Such District Court shall have exclusive original jurisdiction over such , proceedings. All orders, judgments and decrees of such District Court ,my be appealed as is provided in the case of a civil action in such District Court. Sec. 6 Duration. .The Board may adjust or eliminate rent controls if, i its judgment the need for continuing rental levels no longer exists because of sufficient construction of new ental units or because the demand for rental unite has been otherwise met. Any maximsan ental level removed under this section shall be reimposed or adjusted and reimposed upon a finding by the Board that a sub- stantial shortage of rental units exists in the City and that the reimposition of rent control is necessary in the public interests. As part of its investigation to determine the continued need for rent controls, the Board shall give adequate notice of and hold at least two (2) public hearings to collect information and testimony from landlords, tenants, and interested parties. Any action taken or findings made by the Board under thin Section stall be subjected to original review by the District Court as provided in Section 5 above. Sec. 7 Constitutional Construction. The provisions of this ordinance are severable, and if any of Its provisions shall be held unconstitutional or otherwise invalid by any court of competent jurisdiction, the decision of such court shall mt affect or deposit any of the remaining provisions. Sec. 8 Effective Date. This ordinance shall take effect thirty (30) days from the time of its passage, by which time the Board shall be constituted in accordance with the provisions of Section 3. Sec. 9 Amendment. This Article may be amended or modified by majority vote of thf:City Council and without further vote of the people as permitted ander Article III, Sec. 4 of the City Charter. Sec. 10 Enforcement. 10.1 It sBell be unlawful for any person to demand, accept, retain any rent for the a of o occupancy of any controlled rental unit in excess of the maximum ant prescribed therefor under the provisions of this Article, e or any decision, order, or regulation hereunder pvoaulgated, or otherwise to do or omit to do any action in violation of the provisions of this Article or any order, decision, or regulation of the Hoard. 10.2 Whoever knowingly violates any provision of this Article or any rule, order or regulation hereunder promulgated shall be punishable by a fire of not more than $100.o0, x less than $25.00, and each day a violation continues shall be a separate offense. 10.3 When any violation of any provision of this Article shall be found to exist, the City solicitor, upon notice from the Board, is hereby authorized and directed t institute any and all actions and proceedings, either i law or in equity, that may be Appropriateor necessary to obtain emoplia with the provisions of thin Article in the name of the City of eaagor. "IN CITY COUNCIL -� 106 AO April 12, 1976 NO Received let reading. Amended in a ORDINANCE Section 3.1 in first line by deleting "City Manager" and substitutieg therefor "City Council" sod in the 9th line ( TITU,) "Munioipal Rent CMtrol". deleting "City Manager" and sutstituting therefor "City Council' Further amended by deleting last sentence RECEIVED in Section 3.1. Tabled. CITY Of BANGOR 'a n`Y � CITY CLERKS 0MCE CITY c Znwarcei aro raw by . .. - °76 APII-: 8 PH 2 41 IN CITY COUNCIL June 14, 1976 - Taken from table. 0,- Cavc (161 - Indefinitely Postponed by the. ' following yes and no vote. Councilors voting yes: Pelican, TAGS ptlUtlMB Is CCP/6Ctiy &OlOSSd � Bigney, Brountas, Gass, Sorcerers, - Mooney, Soucy and Soulas. Councilor - voting no: Finnigan.' �. - cwaiieW sa . Bhgrme®3 Wdiimrcp f