Chapter 6.25
HOUSING
Sections:
6.25.040 Legalizing the illegal unit.
6.25.050 Removal of illegal units.
6.25.070 Prevention of new illegal units.
6.25.010 Findings.
A. Whereas, an affordable housing shortage exists based on 1990 census data which shows that 32 percent of all renters in the city are paying more than 30 percent of their gross income on housing, and the number of overcrowded households has increased from five percent to 11 percent between 1980 and 1990; and
B. Whereas, the wait for an available unit in one of the city’s two existing affordable housing projects presently exceeds a year; and
C. Whereas, the status of illegal units are in question and are being considered for legalization to help retain existing affordable housing opportunities provided certain criteria can be met, and any new construction of housing is being done in the best environmental way; and
D. Whereas, the housing study group recognizes that illegal units are an important part of the community’s housing supply and their elimination would further aggravate the housing shortage; and
E. Whereas, the housing authority approved the concept of legalizing illegal units for affordable housing; and
F. Whereas, illegal units create possible inferior and hazardous housing because the units may not be constructed to building codes.
Based on the foregoing findings, a legalization program is offered as a viable solution to help meet the city’s affordable housing needs and to prevent further construction of illegal units. (Ord. 816 § 1; Ord. 908 § 1. Code 1997 § 14-1)
6.25.020 Definitions.
For the purpose of this chapter, the following definitions have been assigned to the words and phrases:
A. “Affordable housing” means a rental dwelling unit that does not exceed a maximum monthly rent, including utilities, of 30 percent of 60 percent of the area median income limit adjusted for bedroom size appropriate for that unit. The rents are based on the area median income limits determined by the U.S. Department of Housing and Urban Development (HUD). The city’s housing and economic development staff will calculate the rents whenever HUD establishes new income limits which usually occurs annually during the month of May. The rents will be determined using the following bedroom size appropriate for that unit: Studio – one person; one bedroom – two persons; two bedrooms – three persons; and three bedrooms – four persons. The rent maximums will be distributed to affected property owners and tenants and maintained in the housing and economic development offices.
B. “Deed restricted for legalization” means a restriction on the property that dictates the legalized unit will be utilized only as affordable housing. The deed restriction will include the following six items:
1. The legalized unit shall not be sold independent of the property on which it was constructed.
2. The legalized unit shall not be transferred to another parcel.
3. The legalized unit shall not receive an allocation from the city’s annual distribution of allocations but is not prohibited from obtaining one on the open market. If a legalized unit does receive an allocation from the open market and meets all city and TRPA criteria for a legitimate unit, then the unit will not be restricted by the provisions of this chapter and the deed restriction for legalization will be removed.
4. As defined in this section, the legalized unit may only be utilized as affordable housing and rented to a lower income person. The property owner will be responsible for verifying that the tenant is a lower income person.
5. When renting the legalized unit, the property owner must have a rental agreement which states that the unit has a maximum rent based on 60 percent of the area median income adjusted for family size appropriate for the unit.
6. The property owner of the legalized unit shall agree to cooperate with the housing and economic development staff in monitoring the legalized unit. If the property owner knowingly violates any of the six deed restricted items stated above, the property owner will lose the privilege of having the legalized unit and will be subject to the penalty and other costs stated in SLTCC 6.25.060. The city’s legal and housing and economic development staff will determine if the property owner violated the deed restriction intentionally.
C. “Deed restricted to prevent reconstruction” means a restriction on the property subjecting the current property owner to a penalty of $10,000, in addition to other legal remedies and demolition costs if an illegal unit is found to have been constructed or reconstructed on that parcel. However, the deed restriction shall not be worded in a way that hinders the future sale of that property.
D. “Illegal unit” means an attached or detached residential dwelling unit constructed without permits which provides independent living facilities for one or more persons. It must include permanent provisions for living, sleeping, bathing, cooking, heating, and sanitation on the same parcel as a legal single-family or multifamily dwelling unit.
E. “Legalized unit” means a previous illegal unit that has met all the conditions of SLTCC 6.25.030.
F. “Lower income person” means a person or family whose annual income does not exceed 80 percent of the area median income adjusted for family size. The area median income limits are determined by the U.S. Department of Housing and Urban Development (HUD). Whenever HUD establishes new income limits which usually occurs annually during the month of May, staff will distribute them to affected property owners and tenants and maintain the information in the housing and economic development offices.
G. “Minimum health and safety standards” means that the illegal unit conforms to the inspection criteria adopted by a separate resolution establishing the minimum health and safety standards for illegal units. This was done to allow for future changes in the inspection criteria without having to adopt a new ordinance. Exhibit 1 of the ordinance codified in this chapter outlines the inspection criteria at the time the ordinance codified in this chapter was adopted.
H. “Monitoring” means the housing and economic development staff will randomly survey 10 percent of all properties with legalized units annually to ensure the units meet the conditions of the deed restrictions.
I. “TRPA illegal unit criteria” means that the illegal unit has been classified for legalization by TRPA staff under one of the three date categories as follows:
1. Pre-1975 Illegal Units. These illegal units will be exempt from TRPA Code of Ordinances.
2. 1975 – 1984 Illegal Units. These illegal units will be required to receive a bonus unit from the city’s pool of 820.
3. Post-1984 Illegal Units. These illegal units will be required to meet existing TRPA Code of Ordinances as if they were new projects and will also be required to pay double the normal rate of permit fees. (Ord. 816 § 1; Ord. 843 § 1; Ord. 908 § 1; Ord. 1105 § 1 (Exh. B). Code 1997 § 14-2)
6.25.030 Criteria.
The following criteria shall be met before an illegal unit is legalized:
A. The illegal unit must meet the following density requirements for the zoning of the parcel on which the illegal unit is located after it is legalized:
1. If the plan area statement allows residential and/or tourist accommodations, the parcel may contain one additional unit beyond the density requirements.
2. If the plan area statement does not allow the uses stated in subsection (A)(1) of this section, the illegal unit must be removed. (See Ordinance 843, Section 1).
B. The illegal unit shall be:
1. Attached to the legal dwelling and located on the same lot as the legal dwelling; or
2. Located within the legal dwelling; or
3. Detached from the legal dwelling and located on the same lot as the legal dwelling.
C. The illegal unit shall conform to height, setback, architectural design and other land use regulations generally applicable to residential units in the area of the city in which the property is located.
D. The illegal unit shall meet minimum health and safety standards as adopted by a separate resolution.
E. The parcel on which the illegal unit is located shall contain one and one-half paved parking spaces per unit.
F. The property owner of an illegal unit shall pay the South Tahoe public utility district (STPUD) all applicable costs associated with illegal sewer hookups.
G. The illegal unit shall be deed restricted for legalization as defined in SLTCC 6.25.020(B).
H. The illegal unit must meet TRPA illegal unit criteria as stated in Exhibit 2 of the ordinance codified in this chapter.
I. For any city permits needed to legalize the illegal unit, the current property owner will pay the normal rate for the permit(s) as if it was a new project. (Ord. 816 § 1; Ord. 843 § 1; Ord. 908 § 1. Code 1997 § 14-3)
6.25.040 Legalizing the illegal unit.
If a property is found to contain an illegal unit(s) and the property owner desires to legalize it by paying for the necessary costs to allow the city to evaluate all the legalization criteria stated in SLTCC 6.25.030, the city will provide the property owner with a complete deficiency list. City staff will not be allowed to add additional items to the deficiency list after it has been presented to the property owner except where any additional item was overlooked in good faith and is necessary to correct a condition of the property which would endanger the inhabitants of the property. After being presented with the deficiency list, the property owner will have 30 days to decide if he/she wants to legalize the illegal unit or remove it. If the property owner decides to legalize the illegal unit, he/she must contact the city to begin the process. (Ord. 816 § 1; Ord. 908 § 1. Code 1997 § 14-4)
6.25.050 Removal of illegal units.
A. If an illegal unit cannot be legalized or the owner chooses not to utilize it as affordable housing, the tenant will be required to vacate the unit in accordance with the following schedule:
1. If an illegal unit is found to be in such poor condition that the tenant’s safety is threatened, the building inspector shall notify the tenant and the property owner of the dangerous condition by posting notices in both English and Spanish and the tenant will not be allowed to continue dwelling in that unit. The property owner must refund within 24 hours after the eviction notice is posted any deposit and rent that the tenant is entitled to receive based on the prorating of the last paid rent period up to the date the notice is posted by the building inspector. If the property owner does not refund the money due to the tenant within 24 hours as stated above, the property owner must pay the tenant treble (three times) the amount due. Furthermore, if the tenant of the condemned illegal unit is a low income person and does not have other housing, he/she will be referred to the Department of Welfare.
2. If an illegal unit meets minimum health and safety standards or is at least safe for temporary occupancy and is not occupied by a lower income person, the property owner will have 30 days from the date of the initial inspection to issue a 30-day eviction notice to the tenant. If the eviction notice is not issued within this time frame, the property owner will be subject to a penalty of $200.00 per day until the notice is issued.
3. If an illegal unit meets minimum health and safety standards or is at least safe for temporary occupancy and is occupied by a lower income person, the tenant must contact the housing and economic development staff within 30 days from the initial inspection date to verify that he/she is indeed a lower income person. Housing and economic development staff will determine if a tenant is a lower income person by examining copies of the tenant’s most recent tax returns, paychecks, stubs, bank statements and any other applicable documents that may help verify income. If the tenant does not provide copies of the requested income documents, staff will determine that the tenant is not lower income and must receive an eviction notice within 30 days. Once the tenant is determined to be a lower income person, he/she may stay in the illegal unit until other housing is obtained. However, the housing and economic development staff will require the tenant to submit semi-annually statements verifying that he/she is still dwelling in the illegal unit and other housing has not been located. If the tenant dwells in the illegal unit for one year or longer, his/her income level will be rechecked annually. In addition, the tenant may be required to contact one of the government subsidized apartments within the city and the Section 8 Renter Assistance Program to be placed on these waiting lists. Once the illegal unit is vacated by the tenant, the property owner shall not re-rent the illegal unit, or the property owner will be subject to a penalty of $200.00 per day until the new tenant has vacated the unit.
B. Once an illegal unit is vacated by the tenant, the property owner will have 90 days to remove the illegal unit. If the illegal unit is not removed within this time frame, the city will remove the illegal unit and charge the cost to the property owner under the dangerous building abatement process set forth in SLTCC 4.65.010 et seq.
C. After the illegal unit is removed, the property will be deed restricted to prevent reconstruction as defined in SLTCC 6.25.020(C). (Ord. 816 § 1; Ord. 908 § 1. Code 1997 § 14-5)
6.25.060 Cost and penalties.
Any administrative, inspection, and legal costs incurred by the city in association with an illegal unit shall be charged to the property owner in addition to applicable penalties described in this chapter. Cost and penalties not paid to the city shall be collected through recordation of a lien against the property. Revenues collected from penalties shall go to the housing and economic development and the building and safety division. (Ord. 816 § 1; Ord. 908 § 1. Code 1997 § 14-6)
6.25.070 Prevention of new illegal units.
Any property owner who is found to have constructed a new illegal unit on their property after May 31, 1993, or violated the deed restriction stated in SLTCC 6.25.020(B) will be required to remove the illegal unit in accordance with SLTCC 6.25.050 and will be subject to a penalty of $10,000, in addition to other legal remedies and demolition costs. (Ord. 816 § 1; Ord. 908 § 1. Code 1997 § 14-7)
6.25.080 Appeals.
A property owner may appeal the housing and economic development staff decision arising out of this chapter’s decisions pursuant to Chapter 2.35 SLTCC. (Ord. 1105 § 1 (Exh. B))