Chapter 10-3: Rental Licenses25
This chapter provides for comprehensive enforcement of chapter 10-2, "Property Maintenance Code," B.R.C. 1981, by establishing a system of rental licenses for all dwelling and rooming accommodations in the City that are rented to tenants.
Ordinance Nos. 5798 (1996); 7725 (2010)
10-3-2 Rental License Required Before Occupancy and License Exemptions.
(a) No operator shall allow any person to occupy any rental property as a tenant or lessee or otherwise for a valuable consideration unless each room or group of rooms constituting the rental property has been issued a valid rental license by the city manager.
(b) Buildings, or building areas, described in one or more of the following paragraphs are exempted from the requirement to obtain a rental license from the city manager.
(1) Any dwelling unit occupied by the owner, or members of the owner's family, and housing no more than two roomers who are unrelated to the owner or the owner's family. An owner includes an occupant who certifies that the occupant owns an interest in a corporation, firm partnership, association, organization or any other group operating as a unit that owns the rental property.
(2) A dwelling unit meeting all of the following conditions:
(A) The dwelling unit constitutes the owner's principal residence;
(B) The dwelling unit is temporarily rented by the owner for a period of time no greater than twelve consecutive months in any twenty-four-month period;
(C) The dwelling unit was occupied by the owner immediately before its rental;
(D) The owner of the dwelling unit is temporarily living outside of Boulder County; and
(E) The owner intends to re-occupy the dwelling unit upon termination of the temporary rental period identified in subparagraph (b)(2)(B) of this section.
(3) Commercial hotel and motel occupancies which offer lodging accommodations primarily for periods of time less than thirty days, but bed and breakfast facilities are not excluded from rental license requirements.
(4) Common areas and elements of buildings containing attached, but individually owned, dwelling units.
(Ordinance Nos. 5798 (1996); 7416 (2005); 7725 (2010); 7772 (2010))
10-3-3 Terms of Rental Licenses.
(a) License terms shall be as follows:
(1) Licenses, other than reduced term licenses issued under section 10-3-4, "Reduced Term Rental License," B.R.C. 1981 or temporary licenses issued under section 10-3-9, "Temporary Rental License Appeals," B.R.C. 1981, shall expire four years from issuance or when ownership of the licensed property is transferred.
(A) In addition to any other applicable requirements, new licenses and renewals shall require that the licensee submit to the city manager a completed current baseline (for a new license) or renewal inspection report, on forms provided by the City. The report shall satisfy the following requirements:
(i) The section of the report concerning fuel burning appliances must be executed by a qualified heating maintenance person certifying compliance with those portions of subsection 10-2-10(e), B.R.C. 1981, for which the report form requires inspection and certification.
(ii) The section of the report concerning smoke and carbon monoxide alarms must be executed by the operator certifying that the operator inspected the smoke and carbon monoxide alarms in the licensed property and that they complied with the requirements of chapter 10-2, "Property Maintenance Code," B.R.C. 1981.
(iii) The section of the report concerning trash removal must be executed by the operator certifying that the operator has a current valid contract with a commercial trash hauler for removal of accumulated trash from the licensed property in accordance with subsection 6-3-3(b), B.R.C. 1981.
(b) The city manager shall issue separate rental licenses for individual buildings. Such licenses shall cover all dwelling units and rooming units within such buildings. In a building containing attached but individually owned dwelling units, or any other dwelling units which may be separately conveyed, the city manager shall issue separate rental licenses for each dwelling unit. A structure, or group of structures, shall be considered to be a single building if it has been assigned a single street address by the City. If a complex of buildings on one property is under common ownership, and this owner is willing to have a common expiration date for the rental licenses for all dwelling and rooming units, the city manager may consider the whole complex to be the equivalent of a single building for the purposes of licensing and the fee schedule in section 4-20-18, "Rental License Fee," B.R.C. 1981.
(c) Whenever an existing license is renewed, the renewal license shall be effective from the date of expiration of the last license if the applicant submits a complete renewal application by or within ninety days from the expiration date. Licenses not renewed within ninety days will be considered expired, requiring a new baseline inspection report.
(d) Issuance of any license (new or renewed) extending beyond December 31, 2018 requires meeting the energy efficiency requirements of Title 10-2, "Property Maintenance Code, Appendix C – Energy Efficiency Requirements," B.R.C. 1981.
Ordinance Nos. 5798 (1996); 5952 (1997); 7023 (1999); 7189 (2002); 7725 (2010); 7726 (2010); 7772 (2010)
10-3-4 Reduced Term Rental License.
(a) The city manager shall issue a reduced term license whenever the city manager determines that:
(1) violations of chapter 10-2, "Property Maintenance Code," B.R.C. 1981, revealed during an inspection, individually or in combination, demonstrate a failure to maintain the rental property in a safe, sanitary and clean condition so that the dwelling endangers the health and safety of the occupants, or
(2) There is or has been a violation of a limitation on numbers of occupants or numbers of dwelling units found in title 9, "Land Use Code," B.R.C. 1981, which demonstrates a failure to maintain the rental property in compliance with that title; or
(3) The term of an initial license or renewal of an existing license would otherwise extend beyond December 31, 2018 for a property that has not received an "Energy efficiency requirements inspection" demonstrating compliance with chapter 10-2, "Property Maintenance Code, Appendix C – Energy Efficiency Requirements," B.R.C. 1981.
(A) For violations of chapter 10-2, "Property Maintenance Code," B.R.C. 1981, the license term shall be reduced to twenty four months.
(B) For violations of title 9, "Land Use Code," B.R.C. 1981, the license term shall be reduced to twelve months.
(C) In the case of failure to demonstrate a satisfactory energy efficiency requirements inspection for the subject property, under paragraph (3), above, the license term shall expire December 31, 2018, unless, before that date, the city manager receives an energy efficiency requirements inspection demonstrating compliance, in which case the license term shall extend the full period otherwise prescribed by this chapter.
(b) If an operator disagrees with the decision of the city manager to issue a reduced term license under subsection (a) of this section, such person may appeal the city manager's decision within thirty days after the issuance of the reduced term license, as follows:
(1) For reduced term licenses issued as a result of violations of chapter 10-2, "Property Maintenance Code," B.R.C. 1981, the appeal shall be made as provided in chapter 10-2, section 111, "Means of Appeal," B.R.C. 1981.
(2) For reduced term licenses issued as a result of violations of title 9, "Land Use Code," B.R.C. 1981, the appeal shall be made to the board of zoning adjustment, although the fee amount shall be as specified for an appeal to the board of building appeals.
Ordinance Nos. 5798 (1996); 7725 (2010); 7726 (2010)
10-3-5 Rental License Procedure for Newly Constructed Rental Property.
Baseline inspections are not required before issuance of the first rental license for newly constructed rental property if a license application is submitted by or within one year after the date of issuance of the first certificate of occupancy or temporary certificate of occupancy.
Ordinance Nos. 5798 (1996); 7023 (1999); 7725 (2010)
10-3-6 Rental License Application Procedure for Buildings Being Converted to Rental Property.
Every operator converting a property to rental property shall follow the procedures in this section for procuring a rental license:
(a) Submit a written application for a license to the City, on official city forms provided for that purpose, at least thirty days before rental of the property, including:
(1) A rental housing inspector's certification of baseline inspection dated within twelve months before the application. The operator shall make a copy of the inspection form available to city staff and tenants of inspected units within fourteen days of a request; and
(2) A report on the condition and location of all smoke and carbon monoxide alarms required by chapter 10-2, "Property Maintenance Code" made and verified by the operator; and
(3) A trash removal plan meeting the requirements of subsection 6-3-3(b), B.R.C. 1981 made and verified by the operator.
(b) Pay all license fees prescribed by section 4-20-18, "Rental License Fee," B.R.C. 1981, at the time of submitting the license application.
(c) Take all reasonable steps to notify any occupants of the property in advance of the date and time of the inspection. The operator shall be present and accompany the inspector throughout the inspection, unlocking and opening doors as required.
Ordinance Nos. 5798 (1996); 7023 (1999); 7725 (2010); 7772 (2010)
10-3-7 Rental License Renewal Procedure for Buildings Occupied as Rental Property.
Every operator of a rental property shall follow the procedures in this section when renewing an unexpired rental license:
(a) Pay all license fees prescribed by section 4-20-18, "Rental License Fee," B.R.C. 1981, before the expiration of the existing license.
(b) Submit to the city manager, on forms provided by the manager:
(1) A rental housing inspector's certification of renewal inspection within 12 months before application. The operator shall make a copy of the inspection form available to city staff and tenants of inspected units within fourteen days of a request;
(2) A report on the condition and location of all smoke and carbon monoxide alarms required by chapter 10-2 made and verified by the operator; and
(3) A trash removal plan meeting the requirements of subsection 6-3-3(b), B.R.C. 1981 made and verified by the operator.
(c) Take all reasonable steps to notify in advance all tenants of the property of the date and time of the inspection. The operator shall be present and accompany the inspector throughout the inspection, unlocking and opening doors as required.
Ordinance Nos. 5798 (1996); 7023 (1999); 7725 (2010); 7772 (2010)
10-3-8 Temporary Rental License.
If the inspection shows that there are violations of chapter 10-2, "Property Maintenance Code," B.R.C. 1981, in the building, and the operator cannot correct the deficiencies before the housing is to be occupied (in the case of new rental property) or the existing license expires (in the case of a renewal), the operator may apply, on forms specified by the city manager, for a temporary license. If the manager finds, based on the number and severity of violations, that such a temporary license would not create or continue an imminent health or safety hazard to the public or the occupants, the manager may issue a temporary license. The manager shall specify the duration of the temporary license, for a period reasonably necessary to make the needed repairs and changes. Upon receipt of an additional certificate of inspection showing correction of the deficiencies, and an additional housing license fee, the manager shall issue the housing license.
Ordinance Nos. 5798 (1996); 7023 (1999); 7725 (2010)
10-3-9 Temporary Rental License Appeals.
Any operator denied a temporary license, or aggrieved by the period of time allowed for correction, may appeal the denial or the time for correction, or both, as provided in chapter 10-2, section 111 "Means of Appeal," B.R.C. 1981. As to an appeal of the time reasonably required to correct a violation, the board shall either affirm the city manager's originally prescribed time or grant a longer time to correct the alleged violation.
Ordinance Nos. 5798 (1996); 7023 (1999); 7725 (2010)
10-3-10 Time of Rental License Expiration.
Every rental license expires upon the earliest of the following dates:
(a) The expiration date on the rental license unless temporary authority to rent is allowed under the provisions of section 10-3-8, "Temporary Rental License," B.R.C. 1981, of this chapter;
(b) Thirty days after the date upon which transfer of ownership of the rental property occurs. However, for purposes of this section and section 10-3-11, "Change of Rental Property Owner or Agent," B.R.C. 1981, shall not include situations in which a rental property is transferred from ownership by one or more individuals into a limited liability company form of ownership, if all of the following conditions exist:
(1) At least one transferring owner is a member of the limited liability company;
(2) No exchange of consideration takes place as a condition of the transfer; and
(3) The transferring owners certify on forms approved by the city manager that there will be no significant change in the persons who manage the rental property or, in the alternative, in the persons who are responsible for managing the rental property.
(c) The effective date of any order or notice to vacate the rental property issued under any provision of law;
(d) The expiration of the temporary certificate of occupancy for the rental property if a permanent certificate of occupancy has not been issued; or
(e) The revocation of the certificate of occupancy for the rental property.
Ordinance Nos. 5798 (1996); 7023 (1999); 7636 (2008); 7725 (2010)
10-3-11 Change of Rental Property Ownership or Agent.
(a) Within thirty days after transfer of ownership or change of local agent of a licensed property, the operator shall notify the city manager of the identity and mailing address of the new owner or new local agent.
(b) Within sixty days after transfer of ownership of a property for which there is a current and valid license, the new operator of the property shall apply for a new license under section 10-3-6, "License Application Procedure for Buildings Converted to Rental Property," B.R.C. 1981.
(c) Within thirty days after transfer of ownership or change of local agent of a licensed property, the operator shall notify the city manager of the identity and mailing address of the new owner or new local agent.
(d) Issuance of any licenses extending beyond December 31, 2018 requires meeting the energy efficiency requirements of Title 10-2, "Property Maintenance Code, Appendix C," "Energy Efficiency Requirements," B.R.C. 1981.
Ordinance Nos. 5798 (1996); 7189 (2002); 7636 (2008); 7725 (2010); 7726 (2010); 7772 (2010)
(a) Applicants for any rental housing license, and operators who are renewing an existing rental housing license, shall pay the license fees prescribed by section 4-20-18, "Rental License Fee," B.R.C. 1981, upon submission of any rental housing license application.
(b) If an operator of rental property legally changes the use of a structure by adding units for which such operator receives a rental license under this chapter separate from the rental license for the remainder of the rental property, the operator shall apply for a single rental license to cover the entire property no later than thirty days before the expiration date of the rental license that first expires. There shall be no additional fee assessed for the dwelling units or rooming units that were added to the structure at the time the separate rental licenses are consolidated.
(c) If an operator of rental property reduces the number of dwelling units or rooming units within a rental property, the operator is not entitled to a refund of any fee previously paid.
(d) The city manager shall charge no license fee for the following rental dwelling units, so long as such units have also been individually certified to the city manager as low income rental property by the housing authority of the City of Boulder, and such certification is valid at the time the fee would otherwise be due:
(1) Units owned by or leased and operated by the housing authority of the City of Boulder;
(2) Units owned by or leased and operated by an entity which has a current valid tax status determination by the United States Internal Revenue Service as a section 501(c)(3) tax exempt organization and such units are permanently affordable, as that term is defined in chapter 9-16, "Definitions," B.R.C. 1981; or
(3) Units covered by an assistance payment contract under 49 U.S.C. 1437(b), "Lower-income housing assistance - authorization for contracts for assistance payments for existing dwellings."
(4) If a housing complex under common ownership operates a fixed number or percentage of units as qualifying units under this subsection, but the individual units occupied by low income tenants vary over time, the license and fee waiver allowed by this subsection shall be applied pro rata to the total amount.
Ordinance Nos. 5798 (1996); 7023 (1999); 7725 (2010)
10-3-13 Availability of License.
No operator who holds a rental license shall fail to make the rental license available to anyone within sevent-two hours of receiving a request. Posting of a rental license at the rental property is not required.
Ordinance Nos. 5798 (1996); 7725 (2010)
Whenever any rental property is required to be licensed under this chapter, and neither the owner nor the operator is a natural person domiciled within Boulder County, Colorado, the owner shall appoint a natural person who is domiciled within Boulder County, Colorado, to serve as the local agent of the owner and the operator for service of such notices as are specified in chapter 10-2, section 108, "Unsafe Structures and Equipment," and section 109, "Emergency Measures," B.R.C 1981, and notices given to the local agent shall be sufficient to satisfy any requirement of notice to the owner or the operator. The owner shall notify the city manager in writing of the appointment within five days of being required to make such an appointment, and shall thereafter notify the city manager of any change of local agent within fifteen days of such change.
Ordinance Nos. 5798 (1996); 7725 (2010)
10-3-15 City Manager May Order Premises Vacated.
(a) Whenever the city manager determines that any rental housing is in violation of this chapter or of chapter 10-2, "Property Maintenance Code," B.R.C. 1981, and has caused a summons and complaint requiring the operator to appear in municipal court to answer the charge of violation to issue, and the summons cannot be served upon the operator despite reasonable efforts to do so, or, having been served, the operator has failed to appear in the municipal court to answer the charges or at any other stage in the proceedings, or, having been convicted or entered a plea of guilty or no contest, the operator has failed to satisfy the judgment of the court or any condition of a deferred judgment, then the city manager may, after thirty days' notice and an opportunity for a hearing to the tenants and the operator, require that the premises be vacated and not be reoccupied until all of the requirements of the Property Maintenance Code and the rental licenses code have been satisfied and a rental housing license is in effect. No person shall occupy any premises as a tenant after receiving actual or constructive notice that the premises have been vacated under this section.
(b) Any notice required by this section to be given to an operator is sufficient if sent by first class or certified mail to the address of the last known owner of the property as shown on the records of the Boulder County Assessor as of the date of mailing. Any notice to the tenant required by this section is sufficient if sent by first class or certified mail to or delivered to any occupant at the address of the premises and directed to "All Tenants."
(c) The remedy provided in this section is cumulative and is in addition to any other action the city manager is authorized to take.
Ordinance Nos. 5798 (1996); 7725 (2010)
10-3-16 Administrative Remedy.
(a) If the city manager finds that a violation of any provision of this chapter or chapter 10-2, "Property Maintenance Code," B.R.C. 1981, exists, the manager, after notice to the operator and an opportunity for hearing under the procedures prescribed by chapter 1-3, "Quasi-Judicial Hearings," B.R.C. 1981, may take any one or more of the following actions to remedy the violation:
(1) Impose a civil penalty according to the following schedule:
(A) For the first violation of the provision, $150.00;
(B) For the second violation of the same provision, $300.00; and
(C) For the third violation of the same provision, $1,000.00;
(2) Revoke the rental license; and
(3) Issue any order reasonably calculated to ensure compliance with this chapter and chapter 10-2, "Property Maintenance Code," B.R.C. 1981.
(b) If notice is given to the city manager by the operator at least forty-eight hours before the time and date set forth in the notice of hearing on any violation that the violation has been corrected, the manager will reinspect the building. If the manager finds that the violation has been corrected, the manager may cancel the hearing.
(c) The city manager's authority under this section is in addition to any other authority the manager has to enforce this chapter, and election of one remedy by the manager shall not preclude resorting to any other remedy as well.
(d) The city manager may, in addition to taking other collection remedies, certify due and unpaid charges to the Boulder County Treasurer for collection as provided by section 2-2-12, "City Manager May Certify Taxes, Charges and Assessments to County Treasurer for Collection," B.R.C. 1981.
(e) To cover the costs of investigative inspections, the city manager will assess operators a $250.00 fee, per inspection, where the city manager performs an investigative inspection to ascertain compliance with or violations of this chapter.
Ordinance Nos. 5798 (1996); 7725 (2010); 7772 (2010)
(a) The penalty for violation of any provision of this chapter is a fine of at least $500.00 and not more than $2,000.00 per violation, or incarceration for not more than ninety days in jail, or both such fine and incarceration. In addition, upon conviction of any person for violation of this chapter, the court may issue a cease and desist order and any other orders reasonably calculated to remedy the violation. Violation of any order of the court issued under this section is a violation of this section and is punishable by a fine of not more than $4,0000.00 per violation, or incarceration for not more than ninety days in jail, or both such fine and incarceration.
(b) It shall be a condition of any deferred prosecution or deferred or suspended sentence under this chapter that the defendant commit no violations of this chapter for at least one year from the date of such deferred prosecution or deferred or suspended sentence.
(c) Notwithstanding paragraph (a) of this section, the following specific sentencing considerations shall apply to fines imposed for violations:
(1) The court shall consider any evidence presented by the defendant that a potential fine would be confiscatory. A confiscatory fine is a fine that would deprive a normally capitalized owner of the ability to continue operating a rental housing business of the sort involved in the case before the court. No fine that is confiscatory shall be enforced by the court.
(2) In imposing a fine in any single case or in any consolidated cases, the court may weigh all factors normally and properly considered in connection with the imposition of fines, including the seriousness of the violation, the past record of the defendant, the economic circumstances of the defendant and all mitigating or aggravating factors relevant to the violation or to the defendant. In addition, in determining the amount of any fine, the court may consider:
(A) The imposition of a fine that would deprive the defendant of any illegal profit collected because of the occurrence of the violation or violations on the rental housing property;
(B) The imposition of a reasonable penalty in addition to any level of fine that is attributable to illegally obtained profit; and
(C) The imposition of such additional fine as is determined by the court to constitute a reasonable amount to be suspended in order to ensure compliance with any terms of probation imposed by the court.
(d) No fine imposed in a single case alleging multiple dates of violation, nor any fine in consolidated cases alleging multiple days of violation, shall exceed the maximum fine that might be imposed for fifteen separate violations unless the court finds special aggravating circumstances. Where special aggravating factors are at issue, the following procedures shall apply:
(1) The defendant shall be entitled to ten days' notice of any special aggravating factors upon which the prosecution intends to rely at the sentencing hearing or about which, based upon evidence previously presented, the court is concerned. If necessary in order to provide such notice, a defendant shall be entitled to a continuance of the sentencing hearing.
(2) A judicial finding of the existence of special aggravating factors shall not mandate that the court impose any particular level of fine but will, rather, provide the sentencing court with discretion to determine a fine based upon all the criteria set forth in this subsection.
(3) Special aggravating factors, for the purpose of this subsection, shall require a judicial finding of one or more of the following:
(A) The violations at issue were flagrant and intentional on the part of the defendant;
(B) The defendant, after learning of the violation, failed to attempt corrective action over a sustained period of time; or
(C) A fine equivalent to the maximum fine permitted for fifteen separate violations would be inadequate to disgorge the defendant of illegal profits obtained as a consequence of the violations or would be inadequate to ensure that the violation is neither profitable nor revenue neutral for the offender.
Ordinance Nos. 5798 (1996); 7725 (2010)
10-3-18 Authority to Issue Rules.
The city manager may adopt reasonable rules to implement the provisions of this chapter.
Ordinance Nos. 7636 (2008); 7725 (2010)
10-3-19 Owner Occupied Designation.
Repealed.
Ordinance No. 7772 (2010)
25 Adopted by Ordinance No. 7725, effective January 3, 2011.