Cape looks to revamp rental inspections; some landlords say plan needs revision

The city of Cape Girardeau plans to revamp its rental-inspection program to make it more self-supporting.

Development services director Alex McElroy said the move would allow the city to cover most of the cost of operating the program.

Under the plan, which city officials expect to implement this summer, landlords would see a reduction in annual rental-

license fees while paying a new, $65 fee for rental inspections.

Currently, rental license fees generate less than $48,000 annually, while operating costs total more than $106,000, McElroy said.

As a result, the city has to pull from the general revenue fund to cover the remaining $58,530 in annual expenses.

Under the new plan, fee revenue would cover all but $2,900 of the cost. General-fund money would cover the rest of the expense.

McElroy said members of the Cape Girardeau Landlords Association backed the plan.

But several landlords said Monday the association as a whole has not done so, and no vote was taken.

Ward 1 Councilman and landlord Joseph Uzoaru serves as the association’s president.

He said the board of directors initially backed the plan at its meeting April 6, with the intent to bring the issue to the association members later that month.

“The whole organization supports improving the quality of housing in Cape Girardeau,” Uzoaru said. “We want to clean up substandard housing.”

The current system hasn’t worked because some people are unwilling to report code violations, Uzoaru said city staff told him.

But the councilman suggested the plan may need some revisions to secure the association’s full backing.

“I think some of these things can be clarified,” Uzoaru said.

He said he thought city staff would be in attendance at a meeting of the association’s membership April 26, but no one from the city staff came to the meeting.

Uzoaru said McElroy is expected to attend the association’s next meeting, scheduled for May 25 at the Cape Girardeau Public Library, to discuss the rental-inspection plan.

The city can implement the rental-inspection plan without direct approval from the city council, Uzoaru said.

The plan, however, would be a part of the overall city budget for fiscal 2017, which the council would have to adopt.

McElroy said he previously discussed the plan with Uzoaru in the councilman’s role as head of the landlords association.

McElroy indicated he thought he largely had buy-in from landlords for the fee plan.

But some landlords said they had not signed off on the plan.

Questions remain

David Soto, whose company manages several rental properties, serves on the association’s board of directors.

He said association members took no action at the group’s April 26 meeting, which occurred three days before city staff outlined the fee plan at the city council’s annual retreat.

He said it was his understanding the plan still was under discussion, and no decision had been made by city staff.

Soto said he first learned of the city’s plan to move forward with the changes when contacted Monday by a reporter.

“It was a surprise to me,” he said.

Soto said he has seen little evidence the licensing and inspection program has addressed problems with substandard housing.

“There is substandard housing in Cape Girardeau,” he said, but insisted the city’s program has been ineffective and largely a waste of money.

Jason Coalter, who serves as vice president of the landlord association, agreed with Soto association members did not endorse the proposed changes.

Coalter suggested there still is time to rework the plan to garner landlord support.

Robert Blasiney, who manages 227 rental units, said Tuesday landlords agree the current system needs to be changed, but not as crafted by the city staff.

Blasiney said association members believe landlords who have substandard housing should be charged inspection fees that would cover the city’s costs for addressing problems associated with those units rather than the city charging all landlords a routine inspection fee.

“They want to charge everybody,” Blasiney said.

But Uzoaru said landlords with substandard housing units would end up paying more because the city would have to make at least a second inspection to see whether the problems had been corrected.

As a result, those landlords with housing violations would be charged at least $130 for inspections.

Under the current system, landlords with one to five rental units pay an annual $50 licensing fee, while landlords with six or more units pay a $100 fee.

City officials said those who own only a handful of rental units are being charged disproportionately, compared with landlords who have a large number of units.

More inspections

Under the new plan, all landlords would pay a $20 annual license fee. In addition, the city would levy a $65 fee for any rental inspection, except in the case of unfounded complaints.

Cape Girardeau has 776 landlords, more than 2,900 rental buildings and 6,966 licensed rental units, McElroy said.

The rental license fee would generate more than $15,000 annually. McElroy said the inspection fee would generate nearly $88,000 annually, based on 1,350 inspections a year.

The bulk of those inspections would be routine, compliance inspections, not complaint-based, he said.

Cape Girardeau has two code inspectors. McElroy estimated two inspectors combined could perform six rental inspections per business day.

Currently, the city inspects only about 300 rental units a year.

But McElroy told the city council at its annual retreat last month under the current system, the city asks landlords to call to schedule an inspection.

As a result, there are often delays in performing inspections, he said.

Under the new system, the city will schedule inspections and notify the landlords.

If the landlord has a scheduling conflict, he or she can contact the city staff to reschedule the inspection.

McElroy said the city has no plans to inspect every unit in the large apartment complexes during an inspection unless serious health or safety issues are discovered in the units examined.

Landlords typically have 30 days to address the problems.

If the problems are not addressed, the city suspends the license for that rental unit, McElroy said.

Since enactment of the rental licensing program in 2013, the city has issued 22 suspensions, officials said.

City manager Scott Meyer said the city government wants to find the right level of regulation to enforce minimum health and safety standards.

“You don’t want to over-regulate,” he said.

When violations are discovered, McElroy said, they typically involve such things as lack of properly functioning smoke alarms, exposed electrical connections, lack of proper functioning plumbing and heating systems, pest infestation, rotting porches, steps and decks, and leaking roofs and basements.

Violations caused by tenants include failing to dispose of trash on a timely basis, disconnected utilities due to nonpayment of bills and converting rooms into unsafe bedrooms, McElroy said.

mbliss@semissourian.com

(573) 388-3641

Pertinent address:

401 Independence St., Cape Girardeau, Mo.