Cape rental inspection ordinance passes first hurdle

City staff feel enough updates have been made to a proposed ordinance that would require licensing of rental property in Cape Girardeau and subject properties to inspections, while a group that represents local real estate agents and some property managers say the ordinance's language is still too vague.

The first reading was passed unanimously by the city council Monday night. The ordinance needs to pass again on the second and third readings for it to take effect.

The Cape Girardeau County Board of Realtors is not totally against the ordinance, say representatives of the group, citing appreciation for the safety and protection the ordinance could provide tenants, but at the same time they believe the wrong interpretation of wording in some sections could hurt real estate agents who also act as property managers of rentals.

Some council members and city staff say the group's concerns are based on an old draft of the ordinance and are no longer pertinent to ongoing discussions, such as a perceived lack of procedures and a stated fee schedule in the proposal.

Assistant city manager Kelly Green said despite the ordinance looking much different now than how the city had originally envisioned -- for example, plans last year called for hiring of new staff to conduct inspections, while this ordinance would use current staff -- that the overall goals of the ordinance remain increased safety and better-kept rental properties.

"We really are not out to make this difficult for landlords," she said. "We just want good building stock in this town."

Board of Realtors president David Soto told the council Monday night that the group sent a draft of the ordinance to the National Association of Realtors that was not a match to the current proposed ordinance, but that the association's attorneys review of the draft lasted several weeks and that there are still additional concerns among the group.

Those concerns include the potential for violations of the Fourth Amendment, which covers personal property rights, and discrimination against investment property owners in favor of private owners with regard to housing codes. The group also had a concern about what it called "an unclear definition of a responsible party in the event of violations or notifications of the ordinance," but city council members and staff said Monday that the parties would be defined at the time the rental licenses would be issued.

Council members advised the group it should take the current draft of the ordinance back to the Realtors association for further review to get an updated picture of how the ordinance could potentially affect real estate agents and property managers -- as long as that process did not take too long.

Councilman John Voss said he didn't want to see the issue held up by attorneys.

"You are here at the eleventh hour," he told Soto.

Board of Realtors member Bill Cole said by and large what the group wants to see are some language revisions. Other members of the group asked the council to table action on the ordinance until the group could conduct a more thorough review of the updated version.

The ordinance would require landlords to obtain annual licenses with the cost of the license based on how many units they own and mandates maintenance of properties. Some provisions for maintenance and cleanliness would be the responsibility of tenants.

Jason Coalter, president of the Cape Area Landlord Association, said the whole point of the ordinance is to improve communication between the city, property owners and tenants about reasonable expectations and living standards for rental housing. The association worked with city staff to make changes to ordinance drafts through the summer.

Councilwoman Kathy Swan said she was supporting the ordinance on the condition changes would be made as needed as the ordinance makes its way toward passage. Councilman Mark Lanzotti said good suggestions that came out of Monday's meeting, such as including language that all parties involved should be notified in the case of an ordinance violation, would be added to the proposal.

eragan@semissourian.com

388-3627

Pertinent address:

401 Independence St., Cape Girardeau, MO