6.29 - Licensing of Rental Housing § 6.29
Section 6.29: Licensing of Rental Housing
Subdivision 1. Purpose
It is the purpose of this Section to provide minimum standards to safeguard life,
limb, health, property and public welfare by regulating and controlling the use and
occupancy, construction and maintenance of all residential rental units, buildings
and structures within the City. The provisions contained herein are in addition to
other applicable provisions of the City Code and not in lieu thereof.
Subdivision 2. Scope
The provisions of this Section shall apply to all Rental Dwellings, including rented
single-family homes, rented duplexes and Rental Dwellings within Owner-occupied
buildings, as well as to rented condominiums, rented townhouses and leasehold
cooperative Dwelling Units, as those terms are defined in Minnesota Statutes
Section 273.124, Subd. 6, Minnesota Statutes, Chapter 515A, and this Section.
Subdivision 3. Definitions
For the purposes of this Section, the following terms are defined as follows:
A. Annual Renewal Date: The date each year by when a Rental License must
be renewed, according to the schedule of fiscal years for Rental Licenses and
fees established by the City Council pursuant to City Code, Section 6.04. The
City Council may establish a different Annual Renewal Date for different
types of Rental Dwellings and/or types of building in which Rental Dwellings
may be located (e.g., single-family homes, duplexes, townhomes,
condominiums, homes with services, etc.).
B. Apartment Building: A building in which four (4) or more Rental Dwellings
are located and all such Rental Dwellings are owned by the same Owner.
C. Code Official: The City Manager or his/her designee.
D. Disorderly Conduct: Shall have the meaning given such term in Subdivision
5 of this Section.
E. Dwelling Unit: A single dwelling space providing independent living facilities
for one (1) or more persons, including permanent provisions for sleeping,
eating, cooking, and sanitation.
F. Operate: To charge a rental charge or other form of compensation for the
use of a Rental Dwelling.
G. Owner: The person owning or holding title to a Rental Dwelling as
determined by an examination of record title to the property at the office of
the Hennepin County Recorder - Registrar of Titles. If more than one (1)
person owns or holds title to an individual Rental Dwelling, such persons shall
collectively be an Owner for purposes of this Section.
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H. Qualifying Relative: Spouse, parent, child, sibling, grandparent, grandchild,
aunt, uncle, niece or nephew. The relationship may be either by blood or
marriage. The Code Official may require sufficient written proof to establish
whether someone is a Qualifying Relative.
I. Person: A natural person or legal entity.
3. Property Manager: A person authorized to manage and/or operate a Rental
Dwelling on behalf of an Owner.
K. Renewal License: A Rental License that is a renewal of an existing Rental
License granted under this Section, which renewal is granted to the same
Owner and for the same Rental Dwelling as the existing Rental License.
L. Rental License: The license required under this Section, including any
renewal thereof.
M. Rental Dwelling: A Dwelling Unit in the City to which a Tenant has been
granted the right to use. A Rental Dwelling includes accessory structures
such as garages and storage buildings and appurtenances such as sidewalks
and retaining walls which are on the premises on which a Rental Dwelling is
located.
N. Tenant: Any person granted temporary use of a Rental Dwelling, other than
the Owner of the Dwelling Unit and/or Qualifying Relative(s) of that Owner,
pursuant to a lease or other agreement, whether or not reduced to writing.
Subdivision 4. License Required
A. When required. No person shall operate a Rental Dwelling unless the Owner
thereof shall have first obtained a Rental License for such Rental Dwelling as
provided for in this Section. Any Rental License received under this Section
shall commence upon the date of issuance and, unless revoked or
suspended, shall remain valid until the next applicable Annual Renewal Date,
provided no Rental License shall extend for more than a twelve (12) month
period. A person who is operating a Rental Dwelling after the Rental License
has expired is operating an unlicensed Rental Dwelling.
1. Exceptions:
a. A Rental Dwelling is not subject to this Section if it is within a hotel,
motel, hospital or a nursing home, assisted living, and other
residential facilities or portions thereof licensed and inspected by the
state for compliance with state building or fire codes or the City of
Golden Valley Property Maintenance Code. A Rental Dwelling within
any of the following types of facilities is subject to this Section unless
the facility has a facility license issued by the state and is inspected by
the state for compliance with state building or fire codes or the City's
Property Maintenance Code: group homes, independent living facilities,
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assisted living facilities, board and lodging homes, and other
residential facilities or portions thereof, including those facilities that
provide support services for their residents or that receive program
reimbursement or financial assistance.
b. A room temporarily leased to a natural person within a Dwelling Unit
while the Owner of that Dwelling Unit resides in the Dwelling Unit shall
not be subject to this Section, provided no more than three (3)
persons shall so lease a room within a Dwelling Unit at one time.
B. What the Rental License Covers. There shall be one (1) Rental License for
each Rental Dwelling, provided when a building or buildings on a single
premises contain two (2) or more Rental Dwellings and all the Rental
Dwellings within such building(s) are owned by the same Owner, only one (1)
Rental License shall be required for such building(s). The City shall have
authority to exercise its licensing powers under this Section, including the
power to issue, renew, deny, revoke, and suspend Rental Licenses, with
respect to an entire building or only a portion of a building.
C. Fees. There shall be annual license fee for each Rental License. Such fee shall
be in the amount established by the City Council pursuant to City Code,
Section 6.04. There shall be no proration of Rental License fees for a Rental
License that extends for less than twelve (12) months. The amount of the
Rental License fee may vary based on the type of Rental Dwelling, the type
of building in which the Rental Dwelling is located, and/or the number of
Rental Dwellings located in the building(s) that is the subject of a Rental
License. There shall be no fee charged for an initial inspection to determine
the existence of any violations of the City Code at a Rental Dwelling. The City
Council shall establish a fee for any reinspections necessary to determine
whether identified violations have been corrected, to restore a Rental License
that has been revoked or suspended, or for any other reason a reinspection
may be required under this Section. The Code Official may waive the
reinspection fee in event of an error or other reasonable cause determined by
the Code Official, including extension of time granted for compliance.
D. Application. Application for a Rental License shall be made in writing on forms
promulgated by the City Manager or his/her designee and accompanied by
the fee amount. In the case of a license renewal, such application shall be
submitted at least thirty (30) days prior to the expiration date of the then
existing Rental License. If the application for a license renewal is not received
by the City at least thirty (30) days prior to the expiration date of the
existing Rental License, the applicant shall pay a late fee in the amount
established by the City Council. The Code Official may waive the late fee in
event of an error or other reasonable cause determined by the Code Official.
All applications shall specify the following:
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1. Name, address, and telephone number of the Owner of the Rental
Dwelling, including name of the contact person if the Owner is a legal
entity.
2. Name, address, and telephone number of any property manager actively
managing said Rental Dwelling.
3. Name and address of the vendee if the Rental Dwelling is owned or being
sold on a contract for deed.
4. Legal address of the Rental Dwelling.
5. Number of Rental Dwellings that are the subject of the application if the
application involves a building in which two (2) or more Rental Dwellings
are located and all such Rental Dwellings are owned by the same Owner.
6. Name, address and telephone number of on-site operating manager, if
any.
7. Any other information requested by the Code Official to establish
compliance under this Section.
8. If the Owner identified in the application is a legal entity, the applicant
shall submit, upon request of the Code Official, the name and address of
all partners, shareholders or interest holders.
E. Inspections Required. Each Rental License application and Rental License is
at all times subject to the Code Official's right to inspect the affected Rental
Dwelling to determine whether it is in compliance with the City Code and
state law. The Code Official shall determine the schedule of periodic
inspections. Inspections may include all common areas, utility and
mechanical rooms, garages, exterior of structures and exterior property
areas.
F. Access for Inspection. No Rental License shall be issued under this Section
unless the Owner of the Rental Dwelling agrees to permit inspections, upon
reasonable notice from the Code Official to the Owner, to determine
compliance with the City Code and state law. The submission of a Rental
License application or the possession of a Rental License issued by the City
shall constitute such agreement by the Owner identified in the application or
on the Rental License. Each Tenant shall grant access to any part of its
Rental Dwelling at reasonable times for the purpose of effecting inspection,
maintenance, repairs or alterations as are necessary to comply with the
provisions of this Section. If any Owner, Owner's agent, property manager or
Tenant fails or refuses to permit entry to a Rental Dwelling under its control
for an inspection pursuant to this Section, the Code Official may pursue any
remedy at law or under the City Code, including, but not limited to, securing
an administrative search warrant for the Rental Dwelling, issuing an
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administrative citation, denying a Rental License application, revoking or
suspending a Rental License, or denying a renewal license. Without limiting
the foregoing, should an Owner, Owner's agent, or property manager fail to
keep a scheduled inspection without reasonable cause or refuse to permit
entry to the Rental Dwelling, a reinspection fee may be charged.
G. Resident Agent Required. No Rental License shall be issued for a Rental
Dwelling unless:
1. The Owner thereof resides within the counties of Hennepin, Ramsey,
Anoka, Carver, Dakota, Scott, Washington, Sherburne or Wright or
2. The Owner designates in writing an agent or property manager residing or
located within such counties who is responsible for maintenance and
upkeep of the Rental Dwelling and who is authorized to provide the Code
Official access to the Rental Dwelling, to receive service of notice of
violations of the City Code, to receive orders from the Code Official and to
institute remedial action to effect such orders and to accept all service of
process pursuant to law.
H. Crime Free Training. An Owner or property manager who owns or manages
more than one (1) Rental Dwelling in the City must complete a Crime Free
Training program (or similar program) approved by the City's Police
Department. No renewal license shall be granted unless the Owner (and
property manager, if any) identified on the Rental License application has
completed such training within the three (3) year period immediately
preceding the date of such application. If a Rental Dwelling owned by a
person who is not required to complete this training pursuant to the
foregoing and that Rental Dwelling is the subject of three (3) or more events
of Disorderly Conduct within a three hundred and sixty-five (365) day period,
that person must complete the training before a renewal license may be
granted for that Rental Dwelling.
I. Crime Free/Drug Free Lease Addendum Requirements.
1. Subject to any preemptory state and federal laws, all signed Tenant
leases, including any lease renewal, for a Rental Dwelling executed after
January 1, 2017, shall contain the following crime free addendum
language or equivalent language:
a. Tenant, any members of the Tenant's household or a guest or other
person affiliated with the Tenant shall not engage in illegal activity,
including drug-related illegal activity, on or near the premises.
b. Tenant, any member of the Tenant's household or a guest or other
person affiliated with the Tenant shall not engage in any act intended
to facilitate illegal activity, including drug-related illegal activity, on or
near the premises.
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c. Tenant, any member of the Tenant's household or a guest or other
person affiliated with the Tenant shall not permit the Rental Dwelling
to be used for, or to facilitate illegal activity, including drug-related
illegal activity, regardless of whether the individual engaging in such
activity is a member of the household or a guest.
d. Tenant, any member of the Tenant's household or a guest, or other
person affiliated with the Tenant shall not engage in the unlawful
manufacturing, selling, using, storing, keeping, or giving of a
controlled substance (as defined in Section 102 of the Controlled
Substance Act [21 U.S.C. 802]) on or near the premises.
e. Violation of the above provisions shall be a material and irreparable
violation of the lease and good cause for immediate termination of
tenancy.
f. The term "drug related illegal activity" means the illegal manufacture,
sale, distribution, use, or possession with intent to manufacture, sell,
distribute, or use of a controlled substance (as defined in Section 102
of the Controlled Substance Act [21 U.S.C. 802]).
2. Non-exclusive remedies. The crime free/drug free addendum is in addition
to all other terms of the lease and do not limit or replace any other
provisions.
3. Posting. All Apartment Buildings shall post the Rental License issued for that
building. The Rental License shall be conspicuously posted (in a frame with a
glass covering), in a common area, hallway or lobby. All other Rental
Dwellings shall have a copy of the Rental License on the premises.
K. Applicable Laws. Rental Licenses shall be subject to the applicable provisions
of the City Code and state law relating to Rental Dwellings.
L. Transfer of License. No Rental License under this Section is transferable.
1. If any Owner holding a Rental License transfers ownership or legal control
of the Rental Dwelling that is the subject of the Rental License,
2. If appoints or changes the agent required under Subdivision 4(G) in this
Section, and/or
3. If authorizes a property manager to manage the Rental Dwelling (other
than a property manager identified in the application for the Rental
License), then the Owner shall provide the Code Official written notice of
such event within seventy-two (72) hours thereafter. Such notice shall
include, as applicable:
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a. The name and address of the person succeeding to the ownership or
control of such Rental Dwelling,
b. The name and address of the appointed agent; and
c. The name and address of the authorized property manager. Any new
Owner shall apply for a new Rental License within three (3) days after
its acquisition of the Rental Dwelling.
Subdivision 5. Conduct On Licensed Premises
It shall be the responsibility of an Owner holding a Rental License to take
appropriate action to prevent conduct at the licensed Rental Dwelling by Tenants or
their guests constituting Disorderly Conduct. A violation of any of the following
statutes or ordinances shall be deemed Disorderly Conduct:
A. Minnesota Statutes, Sections 609.75 through 609.76, and City Code Section
10.66, which prohibit gambling;
B. Minnesota Statutes, Sections 609.321 through 609.324, which prohibits
prostitution and acts relating thereto;
C. Minnesota Statutes, Sections 152.01 through 152.025, and Section 152.027,
Subdivisions 1. and 2., which prohibit the unlawful sale or possession of
controlled substances;
D. Minnesota Statutes, Section 340A.401, which prohibits the unlawful sale of
alcoholic beverages;
E. Minnesota Statutes, Section 340A.503, which prohibits the underage use of
alcoholic beverages;
F. Minnesota Statutes, Section 609.72 and City Code 10.60, 10.62, and 10.85
which prohibits Disorderly Conduct when the violation disturbs the peace and
quiet of the occupants of at least one (1) unit on the licensed premises or
other premises, other than the unit occupied by the person(s) committing the
violation; and
G. Minnesota Statutes, Sections 97B.021, 97B.045, 609.66 through 609.67 and
624.712 through 624.716 which prohibit the unlawful possession,
transportation, sale or use of a weapon.
Subdivision 6. Disorderly Conduct Violations
A. Disorderly Conduct at a Rental Dwelling shall be determined and handled by
the Police Department.
B. A determination that Disorderly Conduct has occurred at a Rental Dwelling
shall be made upon substantial evidence to support such a determination and
shall be subject to Minnesota Statutes, Section 504B.205, subd. 3. It shall
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not be necessary that criminal charges be brought to support a determination
of Disorderly Conduct, nor shall the fact of dismissal or acquittal of such a
criminal charge Operate as a bar to adverse license action under this Section
based on such Disorderly Conduct.
C. Upon notification from the Police Department to the Code Official that there
have been three (3) or more events of Disorderly Conduct at a Rental
Dwelling with a thirty-six (36) month period, the Code Official shall send a
written warning to the Owner of such Rental Dwelling, notifying the Owner
that:
1. If there is an additional event of Disorderly Conduct at the identified
Rental Dwelling within the twelve (12) month period following the date of
the warning, such Disorderly Conduct shall constitute a violation of this
Section and shall entitle the City to the remedies set forth herein,
including the revocation, suspension, non-renewal or denial of a Rental
License;
2. Within ten (10) days after the Code Official's issuance of the written
warning, the Owner shall submit to the Code Official and the Police
Department, a written management plan detailing the actions taken and
proposed to be taken by the Owner to prevent further Disorderly Conduct
at the identified Rental Dwelling;
3. Within twenty (20) days after the acceptance of the management plan by
the Code Official and the Police Department, the Owner shall implement
all the provisions of the management plan; and
4. If the Owner fails to submit or implement a management plan as
required, such failure shall constitute a violation of this Section and shall
entitle the City to the remedies set forth herein, including the revocation,
suspension, non-renewal or denial of a Rental License.
D. If the Owner fails to provide or implement a management plan within the
period required, or there is an event of Disorderly Conduct at the Rental
Dwelling within twelve (12) months after the written warning, such failure
shall be a violation under this Section.
Subdivision 7. Revocation or Suspension of Rental License
A. In addition to its powers under City Code, Section 6.03, the City Council may
revoke, suspend, deny or decline to renew any Rental License applied for or
issued under this Section based on any of the following circumstances:
1. The Rental License was procured by misrepresentation of material facts
with regard to a Rental Dwelling or the ownership of a Rental Dwelling.
2. The applicant, or one acting in the applicant's behalf, made oral or written
misstatements accompanying the application.
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3. The applicant has failed to comply with any condition set forth in any
other permits/licenses granted by the City.
4. The activities of the Owner create or have created a danger to the public
health, safety or welfare.
5. The Rental Dwelling, the building of which such dwelling is a part, or any
portion thereof, contains conditions that might injure, or endanger the
safety, health or welfare of any member of the public.
6. Failure to correct violations of the City's Property Maintenance Code in the
time period specified in the notice of violation and correction.
7. Failure to continuously comply with any condition required of the
applicant for the approval or maintenance of the Rental License.
8. Failure to include the crime free/drug free lease addendum in all leases as
required by Subdivision 4(I) of this Section.
9. A violation under Subdivision 6(D) of this Section.
10. Any other violation of this Section.
B. Prior to any revocation, suspension, denial or declination by the City Council
under this Section, the Code Official shall send written notice to the Owner
specifying the ordinance or law violations with which they are accused and
the affected Rental Dwelling. The notice shall also specify the date for the
hearing before the City Council, which shall not be less than ten (10) days
from the date of the notice. At the hearing before the City Council, the Owner
or their representative may submit and present evidence on their behalf.
After the hearing, the City Council may revoke, suspend, deny or decline to
renew the Rental License.
C. If the affected Rental Dwelling is within a building containing more than one
(1) Rental Dwelling owned by the same Owner, the revocation, suspension,
denial or declination may apply to one (1) or more Rental Dwellings within
that building, at the discretion of the City Council.
D. If a Rental License is suspended, revoked or not renewed pursuant to this
Section, then until such time as a valid Rental License has been restored it
shall be unlawful for the Owner to thereafter permit any occupancy of the
formerly licensed Rental Dwelling by a Tenant. The affected Rental Dwelling
shall be vacated by all Tenants, giving Tenants a reasonable time to arrange
new housing and to move their possessions.
E. Rental Licenses may be suspended for up to one hundred twenty (120) days
and may, after the period of suspension, be reinstated subject to compliance
with this Section and any conditions imposed by the City at the time of
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suspension. Rental Licenses that are revoked shall not be reinstated for a
period of up to one hundred twenty (120) days and until the Owner has
applied for and secured a new Rental License and complied with all conditions
imposed at the time of revocation and all applicable sections of the City
Code.
Subdivision 8. Maintenance Standards
Every Rental Dwelling shall be maintained in accordance with the minimum
standards set forth in state law and the City Code, in addition to any other permits
issued by the City or by the state.
Subdivision 9. Conflicts
Where there are conflicts between this Section and any other provision of the City
Code or other state or federal laws, regulations, or rules, the more restrictive shall
govern.
Subdivision 10. Enforcement
The Code Official is hereby authorized and directed to enforce all of the provisions
of this Section and all the provisions of the City's Property Maintenance Code with
respect to Rental Dwellings.
Subdivision 11. Owner and Tenant Responsibilities
A. Owner.
1. Owners of Rental Dwellings shall construct and maintain said dwellings in
accordance with the requirements of the City Code.
2. No person shall lease to another for occupancy any Rental Dwelling which
does not comply with the applicable fire prevention provisions of the City
Code.
B. Tenant.
1. Each Tenant of a Rental Dwelling shall keep in a clean and sanitary
condition that part of the dwelling and related premises which that person
occupies or controls.
2. No person shall occupy any Rental Dwelling which does not comply with
the applicable fire prevention provisions of the City Code.
Subdivision 12. Notices and Orders of Code Official
A. Notice. Whenever the Code Official determines that a Rental Dwelling, a
building of which such dwelling is a part, or any portion thereof violates any
Section of the City Code or that there are reasonable grounds to believe that
a violation exists, notice shall be given in the manner set forth in Section 107
of the City's Property Maintenance Code, provided in all instances such notice
shall also be provided to the applicable Owner, if such Section 107 does not
require such notice to be sent to the Owner.
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B. Emergency Orders. Whenever the Code Official finds that an emergency
exists in relation to the enforcement of the provisions of this Section which
requires immediate action to protect the health, safety or welfare of
occupants of any Rental Dwelling, a building of which such dwelling is a part,
or any portion thereof, the Code Official may issue an order reciting the
existence of such emergency and requiring that such action be taken as
deemed necessary to meet the emergency, notwithstanding any other
provision of this Section.
Subdivision 13. Administrative Citation
The Code Official may issue one (1) or more administrative citations under City
Code, Section 2.90, to enforce any provision in this Section and, in addition to
imposing monetary fines, such citations may require corrective actions.
Subdivision 14. Appeal Process
Any person directly affected by an administrative citation, decision or order issued
by the Code Official pursuant to this Section shall have the right to appeal to a
hearing officer in an administrative hearing as provided for in City Code, Section
2.91. The City Council may establish by ordinance a fee that must accompany any
such appeal under this Section.
Subdivision 15. No Warranty by City
By enacting and undertaking to enforce this Section of the City Code, neither the
City nor its Council, agents, or employees warrant or guaranty the safety, fitness or
suitability of any Rental Dwelling or Dwelling Unit in the City and any representation
to the contrary by any person is a misdemeanor. Owners, their agents, property
managers and Tenants should take whatever steps they deem appropriate to
protect their interests, health, safety and welfare.
Subdivision 16. Violation a Misdemeanor
Every person who violates a subdivision, paragraph or provision of this Section
when such person performs an act thereby prohibited or declared unlawful or fails
to act when such failure is thereby prohibited or declared unlawful, and upon
conviction thereof shall be punished as for a misdemeanor except as otherwise
stated in specific provisions hereof.
Source: Ordinance No. 564, 2nd Series
Effective Date: 7-31-15
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