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
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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.'
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