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HomeMy WebLinkAbout1973-10-10 267 AA ORDER]6l AA Introduced by Councilor Needham, C tober 10. 1973 CITY OF BANGOR (TITLE.) (orbert city Cj,"%,'g., Cemnwu uon Re:....."aenc Conduct" Petition By the City CaltntQ of the a9v ofBamyor. ORDERED, TUT the communication from the City Clerk relative to the "Rent Control' petition is hereby received. Q — 26] IN CITY COUNCIL October 10, 1973 REcCE1VED Passed. ORDER 1913 Et T-4 PM 2: 07 xTY cab CITY CLERK'S OFFICE Title, CITY U HINcnp, MPNE C,Aty. Clerks, APMRicpti pie;,,:'}PM Control' Petition ...................................... Introduced and 'filed eby ilawa c Kcxt/kwa Councilmen Bangor, the center of Maine—the catea;ay to Maine4 North Woods and Seashore Reports (94 of'Vaasos, dame September 25, 1973 The Honorable City Council Sportsmen: At the request of Mark Schneider, i was asked to prepare the necessary Petition to the City Council for the submission to the people of the question, "Shall the City of Bangor adopt an ordinance establishing rent control and a rent control Board, for the purposes of alleviating the housing crisis m and controlling rents?"' The fors were prepared and ten registered voters of the City originated the petition on August 10, 1973 at the office of the City Clerk. The last day for signing the petition was September 24, 1973. At the end of that day 584 persons had signed, and of that savors it is hereby certified that 516 Were valid signatures. A copy of the proposed ordinance was mailed to each Council member on August 9, 1973. The Petition is available for your inspection at the office of the City Clerk. Respectfully subvitted, aY E. C C k .IEA: an JAY E. ALJLJrY (94 of'Vaasos, dame September 25, 1973 The Honorable City Council Sportsmen: At the request of Mark Schneider, i was asked to prepare the necessary Petition to the City Council for the submission to the people of the question, "Shall the City of Bangor adopt an ordinance establishing rent control and a rent control Board, for the purposes of alleviating the housing crisis m and controlling rents?"' The fors were prepared and ten registered voters of the City originated the petition on August 10, 1973 at the office of the City Clerk. The last day for signing the petition was September 24, 1973. At the end of that day 584 persons had signed, and of that savors it is hereby certified that 516 Were valid signatures. A copy of the proposed ordinance was mailed to each Council member on August 9, 1973. The Petition is available for your inspection at the office of the City Clerk. Respectfully subvitted, aY E. C C k .IEA: an Sec. 2 Enforcing officer. The Director of Public Warks, or his authorized agent, shall perform the duties Set forth in this Ordinance and shall enforce the provisions of this ordinance. He may have such assistance as the City Council shall from time to time provide for. Bee. 3 Abatement of Nuisance by Owner of Property. It shall be unlawful for any owner of private grounds within the control aa to permit o maintain on any such private grounds any dead elm wood aDo tree which is a public nuisance as defined herein, and it shall be the duty and responsibility of such Ownero promptly remove to the City Dump and burn any sucelm tree or dead elm wood,under the supervision and direction of the Director of Public Works, or his authorized agent. Sec. 4 Inspections. The Director of Public Works, or his authorized agent, is hereby authorized and empowered to enter upon private grounds within the control area, with or without the ca s permission, to determine the Presence of Dutch Elm Disease and carry out preventive or control measures therefor. it shall be unlawful for any petn, firm or corporation to take any action to prevent the DirectorOf Public Works, or his authorized agent, from entering upon pxivaLe grounds within the control area for the purpose of such inspection or to interfere with the Director of Public Works, or his authorized agent, in the performance of any of their duties provided for under the provisions of this Ordinance. Bee. 5 Notice to Owner. If it is determined that Such tree is a public nuisance as provided herein, or if the Director of Public Works, or his authorized agent, determines that any dead or substantially dead elm trees, ox dead aIS wood, 1e a public nuisance as provided herein; the Director of Public Works, f his authorised agent, shall s o be served upon the weof record of the private grounds within the control a on which such tree or dead elm wood is located, written notice requiring such owner to comply with the pro- visions of this Ordinance.s If any person, firm corporation upon wham such notice isserved fails, neglects or refuses t remove tthe City Dump and destroy by burning, Such aIn tree or dead elm wood within ninety (90) days after service of such notice, the Director of Public Warks, or his authorized agent, may proceed to remove and burn Such tree or dead elm wood and assess the costs thereof against the owner of such private grounds uW the amount of such costa Shall be paid by the owner to the City of Bangor. Service of notice provided for in this Ordf- e shall be by personal service if the weof the private grounds on which the infected elm tree or elm wood is a resident of the State of Minn. If such owner cannot be found i the State o - evident of the State, written notice mail beserved by registered veil and by publication at least o news paper of general circulation in the City of Bangor• Sec. 6 Abatement of Costs. The Director of Public Works, or his authorised agent, may re firm any t private gr0unds within the carea, rol any infected, dead or substantially dead elm tree or dead elm wood, which is a public nuisance as provided by this ordinance, and assess the costs of the work done by the City against the owner of such private grounds. Such assessment ment of coats shall be in addition t0 the penalties imposed herein for the violation or non compliance with any provision of this Ordinance. Sec. ) Waiver. If the owner of private grounds within the control area to whom the Director of Public Works, or his authorized agent, has sent notice as provided in Section 5 of this Article, shall, in writing, covenant and agree to indemnify and save harmless, the City of Bangor from all Lose, damage, injury, cost and expense arising out of any liability, or claim of liability, for injury or damages to persons or property sustained orclaimed to have been sus- tained - tained by anyone whom never, bys x of its operations provided for by this Article, and also in writing covenant and agree to assune all risk in such operations provided for by this Article, then said Owner shall not be assessed for said costa of removal and burning Eby the City of Bangor. Sec. B Penalty. Any person, firm or corporation violating any of the provisions of this ordinance by failing, neglecting or refusing to comply with the provisions of any notice Mrein provided for, within ninety (90) days after seice thereof, whom shall resist o n obstruct t carrying out ore the provisions of this of shall be guilty meof a mfa- der punishable by fine of not less than ten dollars ($10) nor e than one hundred dollars ($100) for each offense. A separate offense shall be deemed committed on each day during or on which a violation Occurs or continues. hereinafter defined, to. a tenant in connection with the use and occupancy of any rental unit. Section S. Person. An individual, corporation, partnership, association or other organized group of individuals or the legal successor or representative of any of the foregoing. ,Section 6. Rent. The consideration, including any bonus, bene- fits. or gratuity demanded or received for or in connection with the use or occupancy of rental units or the transfer of a lease of arch rental units. Section ]. Rental Units. Any building, structure, or part there- of, or land appurtenant thereto, or any other real or personal property rented or offered for rent for living or dwelling purposes, including houses, apartments, rooming or boarding-house units and other properties used for living or dwelling purposes, together with all services connected with the use or occupancy of such pro- perty, except: A. Rental units which a governmental unit, agency or authority either: (1) Owns or operates; or (2) Finances or subsidizes, if the imposition of rent control would result in the cancellation or withdrawal, by law, of such financing or subsidy; B. Rental units in cooperatives.. C. Rental units in any public institution or college or school dormitory operated exclusively for charitable or educational purposes; or nursing or rest homes, not organized or operated for profit. D. Rental units in any building or structure containing no more than two dwelling units, one of which is occupied by the owner thereof as his permanent residence. E. Rental units in hotels, motels, inns, and tourist homes rented exclusively to transient guests for a period of less than fourteen consecutive days. Section 8. Services. Repairs, replacement, maintenance, painting,. providing light,heat, hot and cold water, elevator ser- vice, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, refuse removal, furnish- ings and any other benefit, privilege or facility connected with the use or occupancy of any rental unit. Services to a rental unit shall include a proportionate part of services provided to Common facilities of the building in which the rental unit is contained. Section 9. Tenant. A tenant, subtenant, lessee, sublessee or other person, entitled to the use and occupancy of any housing accomodation. Article 3 - Rent Control Board. Section 1. Establishment and Composition. There shall be in the municipality a board, known as the Rent Control Board, consist- ing of five residents appointed by the City Manager, including two persons who are members of a tenant's organisation, neither of whom shall own or manage any rental units, two persons who are members of a landlord's association; and one person representing the public interest who shall not own or manage any rental units and who shall be acceptable to a majority of the other members on the Board. In ,the event that no tenant's organization exists, or no member of a tenant's organization agrees to be appointed or to serve, the City Manager shall appoint to the Board two tenants, neither of whom owns or manages any rental units. In the event that no landlord's association exists or no member of a landlord's association agrees to be appointed or to serve, the City Manager shall appoint to the Board two landlords. In the event that, within one month after the appointment of the first four members to the Board, a majority of those members have been unable to mutually agree upon an acceptible candidate for fifth member, the City Council, at its next meeting, shall appoint the fifth member to represent the public interest on the Board. Members of the Board may be removed for cause by a majority vote of the City Council. Section 2. Tem. One tenant and one landlord shall be appointed initially for a two year term, and one tenant, one landlord, and the representative of the public interest shall be appointed initially for a one year term, but thereafter all members of the Board shall serve two year terms. All terms shall expire on the first Monday following the City Council election in the appropriate year. Vacan- cies for expired or unexpired terms shall be filled by the City Manager within thirty days of the vacancy in accordance with the con- ditions set forth in Section 1. Section 3. Compensation. Members of the Board shall receive no compensation for their services, but shall be reimbursed. by the City for necessary expenses incurred in the performance of their duties. Section 4. Powers and Duties. The Board shall, as provided by Article 4 hereof, establish and adjust the maximum rent that shall be charged for rental units. Section 5. Personnel, The Board shall hire, with the approval of the City Manager, such personnel as are needed to effectuate the purposes of this ordinance. Section 6. Orders and Regulations. The Board shall have the power to issue orders and promulgate policies, rules and regulations to effectuate the purposes of this ordinance, including but not limited to a schedule of standard rental increases or decreases for improvement or deterioration in specific services and facilities. The Board shall also recommend to the City for adoption such ordinances and by-laws as may be necessary to carry out the purposes of this ordinance. Section 7. Investigations and Studies.. The Board may make such studies, conduct such hearings and obtain such information concern- ing the supply and quality of housing of all types and regarding the levels and changes in rents, and shall report the same to the City Council as that body may from time to time require. The Board shall also make such studies, conduct such hearings, and obtain such in- formation as is deemed necessary in promulgating any regulation, rule or order under this ordinance or in administering and enforcing this ordinance and their regulations and orders promulgated hereunder. Section S. Registration. The Board shall require registration of all controlled rental units on Forms authorized or to be provided by the Board. Article 4 - Adjustment of Rent. Section 1. Maximum Rent. The maximum rent of a controlled rental unit shall be the rent in effect on January 11, 1973 unless otherwise adjusted by the Board, provided that if no rent was in effect on that date, the maximum rent shall be the first rent charged therafter, unless otherwise adjusted by the Board. If the maximum rent is not otherwise established, it shall be established by the Board. , 4 Section 3. Compensation. Members of the Board shall receive no compensation for their services, but shall be reimbursed. by the City for necessary expenses incurred in the performance of their duties. Section 4. Powers and Duties. The Board shall, as provided by Article 4 hereof, establish and adjust the maximum rent that shall be charged for rental units. Section 5. Personnel, The Board shall hire, with the approval of the City Manager, such personnel as are needed to effectuate the purposes of this ordinance. Section 6. Orders and Regulations. The Board shall have the power to issue orders and promulgate policies, rules and regulations to effectuate the purposes of this ordinance, including but not limited to a schedule of standard rental increases or decreases for improvement or deterioration in specific services and facilities. The Board shall also recommend to the City for adoption such ordinances and by-laws as may be necessary to carry out the purposes of this ordinance. Section 7. Investigations and Studies.. The Board may make such studies, conduct such hearings and obtain such information concern- ing the supply and quality of housing of all types and regarding the levels and changes in rents, and shall report the same to the City Council as that body may from time to time require. The Board shall also make such studies, conduct such hearings, and obtain such in- formation as is deemed necessary in promulgating any regulation, rule or order under this ordinance or in administering and enforcing this ordinance and their regulations and orders promulgated hereunder. Section S. Registration. The Board shall require registration of all controlled rental units on Forms authorized or to be provided by the Board. Article 4 - Adjustment of Rent. Section 1. Maximum Rent. The maximum rent of a controlled rental unit shall be the rent in effect on January 11, 1973 unless otherwise adjusted by the Board, provided that if no rent was in effect on that date, the maximum rent shall be the first rent charged therafter, unless otherwise adjusted by the Board. If the maximum rent is not otherwise established, it shall be established by the Board. , Section 2. Rent Rollback. Rents are hereby rolled back to the maximum rent as referred to in Section 1 above. No landlord shall charge any rent in excess of the maximum rent. until such excess is approved by the Board pursuant to Section 4. Section 3. Maximum Rent Adjustment. A. The Board shall make such adjustments either upward or downward, of the maximum rent established by Section 1 for any controlled rental unit as may be necessary to remove hardships or correct other inequities, while at the same time, assuring that the rent for the unit is established at a level which yields to the landlord a fair net operating income for such unit. B. The following factors, among other relevant factors, which the Board by regulation may define, shall be considered in determin- ing whether a controlled rental unit yields a fair net operating income: ) Increases or any decreases in property taxes; that is the tenant's proportionate share as it relates to the number of housing accommodations in the taxed parcel assessed pro -rats. depending on the amount of space occupied and the rent charged. Further, that in the event that the owner of said parcel re- ceived any form of tax relief for the year in which the addition- al tax was added to the tenant's rent, the landlord shall be responsible for crediting the tenants with a proportionate share of said tax relief. (2) Unavoidable increases or any decreases in operating and maintenance expenses; (3) Capital improvement of the housing unit as distinguished from ordinary repair, replacement and maintenance, prorated over the useful life of the improvement, provided that in no case shall any rent increase for capital improvement exceed 30% of the maximum rent for the unit and provided that in no case shall a landlord be granted an increase for capital im- provements unless the tenants in the unit to be improved have agreed in writing to such improvement. (4) Increases or decreases in living space, services, furniture,. furnishings or equipment; (5) Substantial deterioration of the housing units other than as a result of ordinary wear and tear; and 6 (6) Failure to perform ordinary repair, replacement and main- tenance. C. For the purpose of adjusting rents under the provisions of this section, the Board may promulgate a schedule of standard rental increases or decreases for improvement or deterioration in specific services and facilities. .D.. The Board may refuse to grant a rent increase under this section, if it determines 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 payment of rent without just cause. Section 4. Rent Adiustment Hearings. A. General Powers. The Board shall have the power to adjust the rent for an individual con- trolled rental unit upon receipt of a petition for adjustment filed by the landlord or tenant of such unit, or upon its own initiative. The Board shall have the power to make rent decreases. effective retroactively to August 10, 1993. B. Actions Initiated by the Landlord. A landlord shall notify the Board and tenant or occupant, if any, of the amount of any pro- posed rent increase for a rental unit, at least 30 days before the proposed effective date of such increase. Notice to the tenant or occupant shall be by registered mail andshall include, on a form supplied by the Board, the following: (1) A statement of the rent in effect on January 11, 1993, (2) A statement of the rent presently paid for the rental unit) and (3) A list of the landlord's justifications for the proposed Increase, as provided in Article 4, Section 2. Upon receipt of the landlord's notification, the Board shall set a date for a hearing, and shall notify both landlord and tenant of the time and date set. Notice shall be sent by registered mail, and must be received by both landlord and tenant at least 14 days prior to the hearing date. The hearing date may be extended by the Board upon a showing of good cause by landlord or tenant. C. Actions Initiated by the Tenant. A tenant shall notify the Board and the landlord of the amount of any proposed decrease for a rental unit. Notice to the landlord shall be by registered mail and shall Include, on a form supplied by the Board, a statement of the rent presently paid for the rental unit. Upon receipt of the tenant's notification, the Board shall set a date for a hearing, and shall notify both tenant and landlord of the time and date set. Notice shall be sent by registered mail and moat be received by both landlord and tenant at least 14 days prior to the hearing date. The hearing date may be extended by the Board upon a showing of good cause by landlord or tenant. In an action Initiated by the tenant, the tenant may petition the Board for a rebate of any rent paid in excess -of the maximum rent after August 10, 1973. Any rental increase between August 10, 1973 and the effective date of the ordinance is presumed to be in anticipation of this ordinance and is void unless the landlord can prove that such increase was necessary to yield a fair net operating income. D. Actions Initiated by the Board. The Board, may, at its discretion, initiate a complaint on behalf of a tenant or tenants, where it appears to the Board that the rent being paid for the rental unit in question exceeds the maximum rent, or where it appears to the Board for some other reason, the rent being paid exceeds the fair net operating income to the landlord. Notice in such cases shall be in accordance with the provisions set forth in Section 3, parte A and B above. B. Hearing (1) Rent adjustment hearings may be held before some or all members of the Board, but all final decisions or rent adjust- ments shall be made by the Board in full. The decision shall be based solely upon the evidence presented at the hearing, and a landlord who fails or has failed to cooperate fully with any requests of the Board for information in this hearing or any prior hearing shall not be eligible for any rental increase, and cannot submit any information to the Board unless he sub- mits all the requested information . The Board, upon failure of the landlord to supply any information, may, on information submitted by the tenant, reduce the rent for the rental unit In question. Both landlord and tenant shall have the right to be represented at the hearing by an advocate. (2) The maximum rent shall be presumed to yield a fair net operating income for the landlord. The landlord may overcome this presumption upon a convincing showing of documentary evidence in his favor. (3) The final decision of the Hoard shall be in writing and shall list reasons for the action taken. Certified copies of the decision shall be furnished to both tenant and landlord. Section S. Limitation of Petitions for Individual Adiustments. Notwithstanding any other provision of this ordinance, the Board may, without holding a hearing, refuse to adjust the maximum rent of an Individual rental unit if a hearing has been held with regard to the maximum rent of such rental unit within twelve months, unless there has been a change in ownership of the controlled rental unit since the hearing was held. Article S. provision of Information. Upon receipt by the Board of a petition for adjustment of a maximum rent, upon action initiated by the Board for adjustment of a maximum rent, and upon other action by the Board pertaining to Investigations and studies, the landlord shall furnish to the Board, within seven days after written demand therefor, information pertain- ing to the rental unit or units involved in the petition or action and to the building or structure wherein such rental unit or units are located on a term approved by the Board. Article 6. Retaliatory Evictions. Any eviction by a landlord shall be presumed to be retaliatory if it takes place within one year of any of the following: (1) Signing by the tenant of the petition for this ordinance,. (2) Action initiated by the tenant with the Board, (3) Request of information from the landlord by the Board, or (4) Automatic reduction by the tenant of his rent to the max- imum rent level. Article 7. Civil Remedies. Section A. Landlord's Liability. Any person who demands, accepts, receives, or retains any payment of rent in excess of the maximum lawful rent, in violation of the provisions of this ordinance, or any rule, regulation, or order hereunder promulgated, shall be liable as hereinafter provided to the person from when such payment is demanded, accepted, received, or retained, or to the city for reasonable attorney's fees and costs as determined by the court, plus liquidated damages in the amount of one hundred dollars, or not more than three times the amount by which the payment or payments demanded, accepted, received, or retained exceed the maximum rent which could be lawfully demanded, accepted, received or retained, whichever is the greater; provided that if the defendant proves that :the violation was neither willful nor the .result of failure to take practicable precautions against the occurrence of the violation, the amount of such liquidated damages shall be the amount of the overcharge or overcharges. Section 2. Settlement. If the person from whom such payment is demanded, accepted, received, or retained in violation of the pro- visions of this act or any rule or regulation hereunder promulgated fails to bring an action under this section within 30 days from the date of occurrence of the violation, the Board may either bring such action, or may settle the claim arising out of the violation by im- posing up to triple damages as set forth in Section 1, upon the violator which sum shall be paid to the tenant or tenants concerned. In the event the Board brings action under the provisions of this section, the City shall be entitled to receive attorney's fees and costs under the provisions of Section 1 and the person against whom the violation was committed shall be awarded liquidated dam- ages under the provisions of said Section 1. Section 3. Res Judicata. A judgment for damages or on the merits in any action under this section shall be a bar to any recovery under this section or in any other action against the same defendant on account of any violation with respect to the same person prior to the institution of the action in which such judgment was rendered. Action to recover liquidated damages under the provisions of this section shall not be brought later than one year after the date of the violation. A single action for damages under the provisions of this section may include all violations of the provisions of this section committed by the same defendant against the same person. Section 4. Jurisdiction. The district court for the judicial district within which the rental unit affected is located shall have exclusive original jurisdiction over all actions and complaints brought under this section. Article 8. Criminal Penalties. Section 1. Excesses. It shall be unlawful for any person to demand, accept, receive, or retain any rent for the use or occupancy of any rental unit in excess of the maximum rent prescriged there- for under the provisions of this ordinance or the rules, regulations or orders hereunder promulgated, or otherwise to do or omit to do any action in violation of the provisions of this ordinance or the rules, regulations or orders hereunder promulgated. Section 2. Finder's Fee. It shall be unlawful for any person to demand, accepts receive or retain any payment which exceeds the maximum lawful rent for one month and no finder's fee or service charge shall be lawful unless the person from whom the payment is demanded, accepted, received or retained actually rents or leases the rental unit with regard to which payment of said fee or said charge has been demanded, accepted, received or retained. Section 3. willful Violations. Whoever willfully violates any provision of this ordinance or any rule, regulation, or order here- under promulgated or whoever knowingly makes any false statement in any testimony before the Board orwhoever knowingly supplies the Board with any false information shall be punished by a fine of not less than fifty dollars nor more than one hundred dollars. Article 9. SudiCal Review. Any person who is aggrieved by any action, regulation, or order of the Board may file a compalint against the Board in the District Court having jurisdiction over the area in which the property is located and thereupon an order or notice shall be issued by such court and served on the Board as provided in the case of a civil action. Such District Court shall have exclusive original jurisdi- ction over such proceedings. All orders, judgements and decrees of such District Court may be appealed as is provided in the case of a civil action in such District Court. Article 10. Duration. This ordinance shall remain in effect until the Board determines based on substantial evidence that the need for continuing rental levels no longer exists because of sufficient construction for new rental units or because the demand for rental units has been other- wise met. 11 Article 11. Constitutional Construction. The provisions of this ordinance are severeable, and if any of its provisions shall be held unconst'tutional or otherwise invalid by any court of com- petent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. Article 12. Effective Date. This ordinance shall take effect 30 days from time of its pas- sage, by which time the Board shall be constituted in accordance with the provisions of Article 3, Section 1. REPORT AND RECOMMENLL 1?"^. OF RENTAL HOUSING COMMITTEE October 9, 1973 Since August 27th when the Rental Housing Committee was formed, your Committee has scent nearly 20 hours in session, not to mention th^ hours each of us has spent on his own. Two public hearings were held on September 17 and October 1. At the public hearings, the Committee was supplied with written presentations and data from many sources. In addition, the Committee has met several times in Executive Session to review the material presented and formulate recommendations fcT the Council. Most of the material which the Committee received, together with the transcript of public hearings, has been reproduced and is submitted together with this report for your review. Among the materials which are not provided with title report is ..ccormation provided by the Bangor Tenants Union involving approximately 1.00 •Jal!s they have received since the first of this year regarding cental woblams. The Committee has reviewed all of this material and ; r. vld4d w with a summary of the information contained therein. Report and Recommendations of Rental Housing Com l:tee 10/g/93 2 Since our Committee did not have the resources or time available, our report 1s at best an overview of the present rental housing situation in Bangor. As a Committee, we feel that the impressions gained during the Past month are valid, although in many cases we were not able to qualify or document the problems to the extent that we would have liked. When Dow Air Force Base closed several years ago and approximately 1,100 units of housing were made available to this community, there were fears expressed that such a substantial block of housing would depress the local real estate market. The problem facing the City at that time was how to absorb over night an approximate twenty-five percent (25%) increase of rental units over those then available in the City. A plan was devised and ever night the units were utilized as the military made them available for the local market. The experience of Capehart would tend to Indicate that there was then and there is now a shortage which is reflected in a continuing demand for more rental housing in Bangor end the surrounding area. It appears that certain groups of potential remers who find it difficult to locate rental housing are identifiable, as follows: (1) A substantial number of the complaints of too high rentals and exorbitant rental increases came from people who cannot afford to pay a rent which would represent a fair return for the landlord Involved. Many people who fall Into this category are forced to live in sub- standard housing, because there is insufficient public or subsidized housing available to them. Report and Recommendations of Rental Housing Committee 10/9/73 3 (2) Macy other people seeking rental housing, while concerned about the cost of housing, are more concerned about the unavailability of of housing, especially among young families with children, large families, single people, and people with pets. (3) Finally there were several complaints involving rental increases during the past year, some ranging between 30 - 50% end and a few in excess of 100%. Such occurances appeared to be Isolated, but a few certainly would bear further Investigation to determine if they were justified. During the past five years, our City Code Enforcement Department has bad a two -fold objective. First was to accomplish a complete inspection of all the housing units in the City, while secondly, carrying on the enforce- ment of our various codes and ordinances. The first objective was made necessary in order to qualify our Workable program to be eligible for federal funding. It would appear that the need to meet this objective was one fatter detracting from effective code enforcement and more particularly with coda compliance during the past five years. The result is that today there remain a substantial number of rental units in this city that can be only classified as "dumps". Before making any specific recommendations, the Committee feels that certain factors should be recognized. (1) Earlier In this report we mentioned the recognition of a continuing demand for rental housing. Report and Recommendations of Rental Housing Committee 10/9/73 4 The existence of a continuing demand necessarl.7 indicates that the problem areas will change from day to day and from year to year. That being the case it seems obvious that we must keep abreast of these problems in order to be able to deal effectively with them. (2) Since shelter is a basic necessity of life, It then becomes a matter of public interest to see that all people In Bangor have the opportunity to live in decent, safe and sanitary housing at a renta: rate that they can afford. (3) Government at all levels must work together to meet this goal, but Government has no business in areas where the private sector can do the (ab. The private sector cannot provide decent, safe and sanitary housing if the tenants cannot afford to pay a fair rest. Likewise, Government has no business providing housing to a market that can afford to pay that fair rent. (4) Intertwined with the problem of housing are a myriad of social Problems that must be faced, such as establishing a line of communication between landlords and tenants without fear of reprisal or harassment directed to each other, the obligations on the part of tenants to respect the property they rent, assuming that the landlord maintain a decent apartment, avoiding the creation of ghetto areas and providing some real sense of community to cur rental housing neighborhoods. It takes more than decent housing and Government regulations to solve such problems. Report and Recommendations of Rental Housing Commttae 10/9/93 5 (5) By way of general observation, this Cormittee found that some of the information available to It during the past monch was superficial at best and while symptomatic of many problems, was insufficient to give us the necessary details to precisely define those problem areas. Finally, based upon our review of the informaticn available to us, the Committee makes the following specific recommendations. (1) That this Committee continue as a starchng committee of the City Council to deal with matters related to housing and code enforcement. (2) That the City Council enact an ordinance providing for the licensing of rental housing, similar to the draft Introduced before the Council under Ordinance No. 30-Z on November 22, 1971, which in addition to the previsions contained therein, would also require that the applicants Indicate the rental charged as of the date of filing and also require that any future Increases in rental rates be filed prior to their effective date, together with a statement of the reason for the Increase. (3) That the Code Enforcement Department of the City of Bangor be re -organized and additional personnel added if necessary to provide for (1) the administration of the licensing of rental housing. (2) stepped up enforcement of the Codes and Ordinances particularly in connection with that segment of substandard housing units which are not fit for human habitation. Report and Recommendations of Rental Housing Commitee 10/9/73 6 (9) Closer cooperation with public welfare agency, outside of our own City government, to insure that existing substandard housing unite are not used as relocation resources for persons outside :he City even though in their existing circumstances such relocation might be an improvement. (5) Investigation of existing and future instances of enormous rental increases to determine if they are justified or whether they constitute a violation of the rent profiteering statute. (6) To take all steps necessary through our Public Housing Authority to secure some or all of those Capehart units presently owned by the Air Force and scheduled to be sold privately, in order that they can be diverted, along with that Capehart housing presently owned by the University of Maine, If available, to some form of subsidized housing. In the opindon of our Committee there is no reason why the preceeding six recommendation cannot be implemented Immediately. It would seem appropriate that the Committee make some recommenda- tions regarding the desirability of a rent control ordinance, since this was one of the reasons for the formation of the Committee. We would recommend against the enactment of any rent control ordinance at this time for the following reasons. (a) Although many complaints involving rent increases were brought to the attention of our Committee, there were only a few Involving two or three landlords which appeared to be way out of line. Many complaints were associated with the Air Force owned section of Capehart, and the remainder involved people who are in need of some type of rent subsidization. Report and Recommendations of the Rental Housing Gomm.ttee 10/9/73 (b) The information presently available to the Committee does not provide an adequate basis for recommending a rent control adoption. This is one of the reasons for requiring the filing of rental rates and changes in those rates under the proposed licensing ordinance so that that Information will be available In the future on a continuing basis. (c) Our best estimate indicated that the cost of administering a rent control ordinance would add somewhere between $30,000 and $40,000 to the annual budget of the City. (d) Finally, the information gathered under the rental housing licensing ordinance will better enable us now or in the future to determine If Rent Control is necessary. In addition to the recommendations which we have already made, the Committee would make the further observation: A substantial number of people now and in the future will be unable to afford decent, safe and sanitary housing without some form of subsidy. The Bangor Public Housing Authority, in cooperation with the Maine Housing Authority and Federal Agencies, should be encouraged to take whatever steps are necessary to meet this problem. At the same time the private sector must also be encouraged to meet the continuing demand for housing which it can provide. We cannot expect to encourage either the private or public sector to develop new rental housing and at the same time, through zoning, unreasonably restrict Its location. Report and Recommendations of the Rental Housing rm-:attee 19/9/73 Finally, this Committee considers its work to d'cLe only a start. Respectfully submitted, RENTAL HOUSING COMMITTEE Thomas E. Needham, Chairman George P. Brountas, Member James S. Henderson, Member BTU TENANTS SURVEY - SUMMARY I. New Capehart - approximately 40 Air Force housing complaints, primarily rental rates II. Bangor Housing Authority - c. 20 complaints III. Old Capehart - Private A. 37 complaints B. Detail of rent increases reported: (since 1/11/73) Monthly Rate Change % Number $157-183 ($26) 16.5 14 147-167 ($20) 13.5 8 134-160 ($26) 19.5 2 193-232 ($39) 20.0 2 124-144 ($20) 14.0 2 150-175 ($25) 17.0 2 194-271 ($77) 40.0 1 153-176 ($23) 15.0 1 $20 1 "some increase" 1 "some reduction" 1 193-180 $13 -7.0 2 Averages: $25 15% 37 Average increase = $25 Average percent increase = 15% N. Out of town complaints = 40 cases V. Trailer park complaints = 3 cases VI. Other Bangor community complaints = C. 115 Detail of non -rent complaints (approximate frequency) - Code violations 25 Deposit, no refund 10 Evictions 27 No heat, hot water 17 Rats 5 Harassment 5 Other scattered complaints: Rents too high or increase too much: 50 complaints VI. Bangor community rent increase detail A. Isndlord X's property Monthly Rate Change Percent 5 75-100 ($25) 33 60-125 ($65) 108 130-150 ($20) 15 90-115 ($25) 2B 95-125 ($30) 32 100-125 ($25) 25 70-135 ($65) 93 65-125 ($60) 92 50-130 $80 160 Averages: $44 65% -JEEK674M $ 75-100 ($25) 33% 75-100 ($25) 33 55- 65 ($10) 18 80-125 ($45) 18 135-165 ($30) 22 60-100 ($40) 67 70- 75 ($ 5) 7 100-130 ($30) 30 100-105 ($ 5) 5 90-110 ($20) 22 90-115 ($25) 28 80-100 ($20) 25 125-150 ($25) 20 55- 65 ($10) 18 60- 84 ($24) 40 120-175 ($55) 46 80-170 ($90) 112 100-140 ($40) 40 180-200 ($20) 11 100-140 ($40) 40 75- 85 ($10) 13 80- 90 ($10) 12 60-100 ($50) 100 150-175 ($25) 17 130-150. 20 15 Averages $31 32% 1n addition: two reports of rent increases of $25 one report of a rent increase of $50 VII. Combined Averages: Average rent Increase: $30 or 28% OPINION of the CITY SOLICITOR TO THE MEMBERS OF THE BANGOR CITY COONCIL: SUBJECT: OMISSION OF PROPOSED RENT CONTROL ORDINANCE TO THE VOTERS OF THE CITY OF BANGOR INTRODUCTION On Friday, August 10, 1973, a petition was Initiated by ten registered voters of the City calling for the adoption of municipal rent controls pursuant to an attached proposed ordinance. On August 21, 1973, I submitted to the Council an opinion continuing that the proposed ordinance, if adopted, would be an unlawful exercise of the power delegated by the Legislature to impose such controls in the City of Bangor. Please be advised that I still believe my earlier conclusion to be valid. Recently several members of the Council have asked for an opinion as to whether, uMer the circumstances, the Council want take action on October 15th to place the proposal on the ballot. The purpose of this opinion I$ to offer certain guidance to the Council In making its decision. IN GENERAL 'The term 'initiative' refers to the power reserved ... to the people to propose laws ... and to enact or refect the sees at the polls, generally independent of the legislature." 42 Am Sur 2d, "Initiative and Referendum'11, 649. "Generally speaking, the initiative, in the case of municipal legislation, is initiation of municipal legislation and easement or rejection thereof by the municipal electorate in the event the proposed measure is not amounted by their elected representatives. Under the power of the initiative, the pe op Le of a municipality cannot suspend or prohibit the operation of a law or charter provision except as ancillary to, and necessary for, the adoption and effective operation of an amendment or new Law." 5 McQui Llin, Municipal Corporations, 116.52, 205. 'Mhe power of initiative or referendum may be conferred by the sovereignty upon a municipality with respect to any matter, legislative or administrative, within the realm of Local affairs: and often the power, as conferred,r s extensive, including all ordinances and reaolutiona and practically all actions that might be taken by a municipal council. The power, however, cannot be unlimited, it is restricted to legislation within the power of the municipality to enact or adopt. (Emphasis Cara) p Limitation of the power by general taw my either be express or arise by implication, but the limitation will not be implied unless the limiting provisions are clear or compelling. At least, the power extends to all matters of local concern other than those excluded by express or necessarily implied ax ceptions contained in charter, statutory, or constitutional provisions.... "Ibid. 116.54, 208-209. "On the other hand, the power of Inftiatve and referendum often is more or lees restricted. An ordinance is not subject to referendum if its enactment is mandatary. Furthermore, ordinancess that a - atitutiooal o void or beyond the pow authority mofsa municipality tone act are not subject to initiative or referendum." (Emphasis Mrs) t Ibid. , 209-210. "Courts should interfere with the initiative ... only in clear cases of violation of the law. Mandamus lies, however, to compel submission of an initiative or referendum propnition ora , where all mandatory legal steps have been taken: ... Submission my also be obtained in a proper case by mandatory injunction." Ibid., e16.68, 249-250. 2 "Generally speaking, the initiative, in the case of municipal legislation, is initiation of municipal legislation and easement or rejection thereof by the municipal electorate in the event the proposed measure is not amounted by their elected representatives. Under the power of the initiative, the pe op Le of a municipality cannot suspend or prohibit the operation of a law or charter provision except as ancillary to, and necessary for, the adoption and effective operation of an amendment or new Law." 5 McQui Llin, Municipal Corporations, 116.52, 205. 'Mhe power of initiative or referendum may be conferred by the sovereignty upon a municipality with respect to any matter, legislative or administrative, within the realm of Local affairs: and often the power, as conferred,r s extensive, including all ordinances and reaolutiona and practically all actions that might be taken by a municipal council. The power, however, cannot be unlimited, it is restricted to legislation within the power of the municipality to enact or adopt. (Emphasis Cara) p Limitation of the power by general taw my either be express or arise by implication, but the limitation will not be implied unless the limiting provisions are clear or compelling. At least, the power extends to all matters of local concern other than those excluded by express or necessarily implied ax ceptions contained in charter, statutory, or constitutional provisions.... "Ibid. 116.54, 208-209. "On the other hand, the power of Inftiatve and referendum often is more or lees restricted. An ordinance is not subject to referendum if its enactment is mandatary. Furthermore, ordinancess that a - atitutiooal o void or beyond the pow authority mofsa municipality tone act are not subject to initiative or referendum." (Emphasis Mrs) t Ibid. , 209-210. "Courts should interfere with the initiative ... only in clear cases of violation of the law. Mandamus lies, however, to compel submission of an initiative or referendum propnition ora , where all mandatory legal steps have been taken: ... Submission my also be obtained in a proper case by mandatory injunction." Ibid., e16.68, 249-250. In some states the validity of the ordinance is not at lases in an ensuing mandamus action for failure to submit the proposal to the people. "Courts may be limited to an examination of procedural concrete when called on to interfere with the legislative process of enacting ordinances by the initiative method. The validity of a proposed ordinance has been held not to be involved in mandamus proceedings to compel a submission. If the petition received by the trial court purports on its face to follow the provisions of the law and is not controverted, it to ponce facie sufficient to show that it is what it purports to be." Ibid., §16.68, 250. "on the other hand it hes been ruled that, in a proceeding to compel submission to the electors, in accordance with initiative procedure, a court will look into the question whether, if approved by the voters, the measure would be valid and constitutional." Ibid., 516.69, 253. This approach seems to be the law in Maine. See IaFLeur v. Frost, 146 Me. 270 (1951) "in this cdetection, it has been said that an ordinance submitted moat be of the nature that the legislative body has power to pees. There is no right to invoke a vote of the people as to legislation that would, if approved by them, be unconstitutional: the vote of the people cannot validate an acmonstitutfo,m l law. if the proposed ordinance would be void, mandamus will not lie tommpel its submission or examination and certification for the reason that the writ may not be used to Compel the performance of an act which would have no effect in law. Indeed, under some laws, the validity of an ordinance is required to be passed on by a court prior to its submission." Ibid., 916.69, 253. ISSHE: AMUR THE BANGOR CITY COONCIL MOST TARE ACTION TO SUBMIT TO PROPOSED ORDINANCE No. 269AA) TO THE VOTERS AT A SPECIAL ELECTION OR AT THE BEEF REGLUR MUNICIPAL ELECfICN? On its face Article III of the City Charter seems to give the Council little choice but to either (1) adopt the measure as drafted, or (2) submit the measure to the voters. However, it is my opinion and belief that in limited Circumstances the Council may also have the alternative of refusing to take the necessary action to place publicly initiated measures on the ballot. Assuming that the Council does not wish to implement the alternatives expressed in our Charter, do the present circumstances new permit the Mlyd approach? A similar dilemma faced the Portland City Council in Farris Arty. Gen. v. Colley It AL, 145 Me. 95 (1950). In that case, the City Council was presented with a duly instituted petition calling for the adoption of a pro- posed ordinance providing for the fixing of minimum wages and maximum hours in the Police Department. Portland's Charter (as does ors) expressly provided that such salaries were to be established by the Manager with Council approval. The Council concluded, upon submission of the petition, that the ordirmnce was void inasmuch as it was, in their opinion, in direct conflict with their local charter. The Council refused to put the matter on the ballot, and a mandamus action was brought by the State Attorney General on relation of several voters tofotce a public vote. In upholding the Council's action, the Maine Supreme Court held that the proposal could not be legally adopted because of its conflict with the charter, and could not be properly placed on the ballot. "Phe proposed ordinance, if adopted, would be void. It is not a proper matter for sub- mission for the voters." Ibid. at 102. Another similar situation arose to IaFLeur, Arty Gen v. Prost Et Al, 146 Me. 270 (1951). In that case a proposed Initiated ordinance was also refused because the City Council had concluded that the proposal would be void if adopted. The Court upheld the Council's action. For yet another case upholding the Council's power to pass Judgment in the appropriateness of an initiated proposal, see Burkett, Arty Gen. v. Passage Et Al, 135 Me. 459 (1938). CONCLUSION In conclusion, assuming that the Council agrees with the conclusions of my earlier opinion, I am of the belief that the Bangor City Council has the power, and perhaps the duty, to refuse to piece the pending initiated proposal on the ballot. I caution the Council not to act arbitrarily. The right to Initiate legislation on the local level is an important one and should not be denied without sufficient cause. Each Council member should consider carefully the rights of the petitioners and the intent of the legis- lature as evidenced by our charter. However, to circumstances such as the present, where the petitioners have attempted to provide for the adoption of legislation which is beyond the power of the municipality to enact, it is my opinion and belief that the Council may properly refuse to place such pro- posals on the ballot. Respectfully submitted, Bate: october 15, 1923 Robert E. Miller, City Solicitor REN:tc PGTITInN :9 THE BANGOR CITY COUNCIL PLEASE Sign as your FORTHESUBMISSIOK iG SHB PEOPLE OF FIR, QUESTION name appears on the Voting List ^Shall the City of Bangor adopt an ordinance establishing rent control and a rent control Beard, far the purposes of alleviating the housing crisis and controlling roots?" hie, the undersigned, under oath, depose ant say that we are duly qualified registered voters of the City of Bangor, residing respectively at the addresses placed opposite our names, and we hereby petition the City Council to submit the foregoing question to the voters of the City of Bangor as authorized by the City charter. Names Residences Date I, Jay L. Alley, the City Clerk of the City of Bangor do solemly affirm that the signing of each of the above signatures was made at the office of the City Clerk iL Bangor, Maine. And at the time of said signing, it was ofertained that the parson affixing his came thereto had reasonableknowledge the purpose of the petition. SIGNATURES Ubtained Vaiie Total Previous Pages :age No. total this Page Date 1973 Total to Date Uity Lie=