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Agenda 05/10/2022 Item # 9B (Ordinance - Establishing the Fair Notice to Tenant)05/10/2022 9.B EXECUTIVE SUMMARY Recommendation to enact an Ordinance to establish a Fair Notice to Tenant Ordinance relating to landlords providing fair notice of rent increases over five percent (5%) to tenants with leases of one year or longer. OBJECTIVE: To establish an Ordinance in support of long-term County tenants who are impacted by rent increases. CONSIDERATIONS: On April 26, 2022, the Board of County Commissioners ("Board") approved Agenda Item #11E and authorized staff to move forward with advertising an ordinance to establish a Fair Notice to Tenant Ordinance requiring landlords to provide a 60-day fair notice for tenants in long-term leases experiencing a five percent (5%) or greater rent increase. As background, the cost of housing is on the rise not only in Collier County but also in Florida and nationwide. Comparing Collier County to other areas in Florida, Collier continues to have some of the highest rents and the least number of affordable units in southwest Florida. A recent article in the Washington Post identified the Naples -Marco Island Metro Area as having the highest rental increases in the nation. The residential rental rates in the area have increased by thirty-nine percent (39%) from the first quarter of 2020 to the first quarter of 2022. Redfin economists have stated in a recent Washington Post article, the reason behind the rent increases is "the pandemic was kind of a pause on the economy and now that things are reopening, inflation is picking up, rents are going up and people are realizing they don't have as much disposable income as they might have thought they had." Housing specialists cite the reason for rent increases as (a) demand, (b) pricey and competitive home buying market has priced many would-be-homebuyers out of the market, (c) expiration of rent freezes and other measures that kept rents lower during the pandemic are now expired, and (d) wealthy renters who are able to pay more (high paying industries to allow people to work from anywhere thus the migration from high paying markets like Chicago and New York to more affordable areas). This fast -changing market has caused increases in rental rates and as such communities across the nation and Florida are enacting rental ordinances to address termination periods and rent increase notification requirements. Currently, two (2) communities have enacted ordinances and one (1) community has an ordinance scheduled for adoption: Miami -Dade Ordinance adopted on March 15, 2022, with an effective date of March 25, 2022, requires: • A residential landlord that proposes to increase the rental rate by more than five percent (5%) at the end of a lease for a specific term, or during a tenancy without a specific duration in which the rent is payable on a monthly basis, must provide sixty (60) days written fair notice to the tenant. 2. City of Lake Worth Beach Ordinance adopted and effective April 19, 2022, requires: • A residential landlord that proposes to increase the current rental rate by more than five percent (5%) at the end of a lease for a specific duration, or during a tenancy without a specific duration in which rent is payable on a month to month basis, must provide sixty (60) days written notice to the tenant. 3. City of Tampa Packet Pg. 44 9.B 05/10/2022 Ordinance first reading April 19, 2022, with second reading and adoption scheduled for May 19, would require: • A residential landlord with the City of Tampa that proposes to increase the rental rate of a dwelling unit by more than five percent (5%) at the end of a lease for a specific term shall provide at least sixty (60) days prior written notice to the tenant prior to the end of the term of the lease of the rental increase. Does not apply to rental units governed exclusively by Chapter 723 of the Florida Statutes relating to mobile home park lot tenancies. Violations carry a fine of four hundred fifty dollars ($450) for each and every offense. The Collier County proposed Fair Notice to Tenant Ordinance will enable the County to refer violators to the Code Enforcement Board for formal action should the landlord not provide fair written notice of a rent increase greater than five percent (5%) for residential tenancies. Such violations of this ordinance may be processed according to the Collier County Consolidated Code Enforcement Ordinance (Ord. No., 2010- 04, as amended) with a violation punishable by a fine not exceeding $500 for each violation. If this item is approved, the proposed ordinance will be brought back to the Board with a resolution FISCAL IMPACT: Advertising fees are expected to be $600. The future fiscal impact if additional Code Enforcement staff are necessary to administer is unknown at this time. GROWTH MANAGEMENT IMPACT: There is no Growth Management impact. LEGAL CONSIDERATIONS: In light of the Board's discussion on April 26' I amended the proposed ordinance to apply to only those leases of one year or longer (eliminating the month -to -month issue) and included a specific violations and penalties clause. The proposed ordinance reads in the relevant part as follows: SECTION THREE: Fair Notice to Tenants on Rent Increase More Than Five Percent A residential landlord that proposes to increase the rental rate by more than five percent (5%) at the end of a lease for a term of one year or longer must provide sixty (60) days written notice to the tenant before the tenant must either: (1) accept the proposed amendment; (2) reach an acceptable compromise, or (3) reject the proposed amendment to their tenancy. If the required sixty (60) days written notice has been provided and the tenant has not agreed to the proposed amendment or an acceptable compromise, the landlord may impose the proposed amended term(s) or require the tenant(s) to vacate the residence. SECTION FOUR: Violations and Penalties All violations of this ordinance may be processed according to the Collier County Consolidated Code Enforcement Ordinance (Ord. No, 2010-04, as amended) and per the provisions of F.S. chapter 162, parts I or II, as may be applicable. A violation of this ordinance shall be punishable by a fine not exceeding $500. A separate penalty may be imposed for each violation of this ordinance. In keeping with the Board's discussion, I also added an additional Whereas clause to include the following policy reason for the proposed ordinance: WHEREAS, there are programs that are available to assist tenants in paying their rents, which application process takes a minimum of thirty (30) days; During the April 26t' discussion Staff advised the Board that there are currently millions of dollars in government programs in place for the express purpose of rental assistance to Collier County Packet Pg. 45 05/10/2022 9.B residents, which take a minimum of thirty (30) days to process, which programs would be rendered moot without sufficient time for the tenants to apply and receive the funding. Requiring sixty (60) days' notice of a rent increase over five percent (5%) allows those tenants the opportunity to apply for and obtain the assistance. With that noted, this item is approved as to form and legality. -JAK RECOMMENDATION: To enact an Ordinance to establish a Fair Notice to Tenant Ordinance relating to landlords providing fair notice of rent increases over five percent to tenants with leases of one year or longer. Prepared By: Jacob LaRow, Housing and Grant Development Manager, Community and Human Services Division ATTACHMENT(S) 1. legal ad - Fair Notice to Tenant Ordinance (PDF) 2. Ordinance - Fair Notice to Tenant - JAK signed (PDF) Packet Pg. 46 9.B 05/10/2022 COLLIER COUNTY Board of County Commissioners Item Number: 9.13 Doe ID: 22084 Item Summary: Recommendation to enact an Ordinance to establish a Fair Notice to Tenant Ordinance relating to landlords providing fair notice of rent increases over five percent (5%) to tenants with leases of one year or longer. (Kristi Sonntag, Community and Human Services Director & Jeffrey Klatzkow, County Attorney) Meeting Date: 05/10/2022 Prepared by: Title: Manager - Federal/State Grants Operation Community & Human Services Name: Kristi Sonntag 04/29/2022 5:24 PM Submitted by: Title: Manager - Federal/State Grants Operation — Community & Human Services Name: Kristi Sonntag 04/29/2022 5:24 PM Approved By: Review: Community & Human Services Kristi Sonntag CHS Review Operations & Veteran Services Kimberley Grant Additional Reviewer Public Services Department Todd Henry PSD Level 1 Reviewer County Attorney's Office Derek D. Perry Level 2 Attorney Review Public Services Department Tanya Williams PSD Department Head Review Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Growth Management Operations Support Christopher Johnson County Manager's Office Dan Rodriguez Level 4 County Manager Review Board of County Commissioners Geoffrey Willig Meeting Pending Completed 04/29/2022 5:25 PM Completed 05/02/2022 9:40 AM Completed 05/02/2022 11:27 AM Completed 05/02/2022 12:05 PM Completed 05/02/2022 12:13 PM Completed 05/02/2022 12:31 PM Completed 05/02/2022 1:16 PM Additional Reviewer Completed Completed 05/03/2022 3:20 PM 05/10/2022 9:00 AM Packet Pg. 47 9.B.a NAPLESNEWS.COM I FRIDAY, APRIL 29, 2022 1 19D Public Notices Public Notices NOTICE OF PUBLIC HEARING NOTICE OF INTENT TO CONSIDER ORDINANCE Notice is hereby given that a public hearing will be held by the Collier Count Board of County Commissioners on May 10, 2022, in the Board y of County Commissioners. Meeting Room, Third Floor, Collier Government Center, 3299 Tamiami Trail East, Na- ples FL., to consider the enactment of a County Ordinance. The meeting will commence at 9:00 A.M. The title of the proposed Ordinance is as follows: AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, REQUIRING LANDLORDS TO GIVE LONG TERM TENANTS 60 DAYS WRITTEN NOTICE OF A RENTAL INCREASE IN EXCESS OF 5%; PROVIDING FOR VIOLA- TIONS AND PENALTIES; PROVIDING FOR APPLICABILITY; PROVID- ING FOR CONFLICT AND SEVERABIUTY; PROVIDING FOR INCLU- SION IN THE LODE OF LAWS AND ORDINANCES; AND PROVID- ING FOR AN EFFECTIVE DATE. A copy of'the proposed Ordinance is on file with the Clerk to the Board and is available for inspection. All interested parties are invited to attend and be heard. NOTE: All persons wishing to speak on any agenda item must register with the County Manager prior to presentation of the agenda item to by addressed. Individual speakers will be limit- ed to 3 minutes on any item. The selection of any individual to speak on behalf of an organization or group is encouraged. If recognized by the Chairman, a spokesperson for a group or or- ganization may be allotted 10 minutes to speak on an item. Persons wishing to have written or graphic materials included in the Board agenda packets must submit said material a minimum of 3 weeks prior to the respective public hearing. In any case, written materials intended to be considered by the Board shall be submitted to the appropriate County staff a minimum of seven days prior to the public hearing. All materials used in pre- sentations before the Board will become a permanent part of the record. As part of an ongoing initiative to promote social distancing during the COVID-19 pandemic, the public will have the oppor- tunity to provide public comments remotely, as well as in per- son, during this proceeding. Individuals who would like to par- ticipate remotely, should register up to 6 days in advance through the link provided on the front page of the county website at www.colliercountyfl.gov. Individuals who register will receive an email in advance of the public hearing detailing how they can participate remotely in this meeting. Any person who decides to appeal any decision of the Board will need a record of the proceedings pertaining thereto and therefore, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is based. If you are a person with a disability who needs any accommoda- tion in order to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Please contact the Collier County Facilities Management Division, locat- ed at 3335 Tamiami Trail East, Suite 101, Naples, FL 34112-5356, (239) 252-8380, at least two days prior to the meeting. Assisted listening devices for the hearing impaired are available in the Board of County Commissioners Office. BOARD OF COUNTY COMMISSIONERS (" COLLIER COUNTY, FLORIDA WILLIAM L. MCDANIEL, CHAIRMAN CRYSTAL K. KINZEL, CLERK By: Martha Vergara, Deputy Clerk (SEAL) April 29, 2022 #5236739 Packet Pg. 48 9.B.b ORDINANCE NO.2022 - AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, REQUIRING LANDLORDS TO GIVE LONG TERM TENANTS 60 DAYS WRITTEN NOTICE OF A RENTAL INCREASE IN EXCESS OF 5%; PROVIDING FOR VIOLATIONS AND PENALTIES; PROVIDING FOR APPLICABILITY; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; F AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, it is the intention of this Board to provide all Collier County long term tenants o with a fair notice if their rents are to increase by more than 5%; and a� WHEREAS, approximately half of the housing in Collier County are rental units; and co 0 CN WHEREAS, according to a 2017 study by ULI, 40 percent or 58,685 households in Collier County are considered "cost burdened", which, according to the United States Department of Housing T and Urban Development, includes households who pay more than 30 percent of their income for Y housing and may have difficulty affording necessities such as food, clothing, transportation, and medical care; and WHEREAS, since the coronavirus-2019 (COVID-19) pandemic, there has been an influx of people to Florida from states with higher wages and cost of living which has caused an upsurge in rental rates in Collier County; and WHEREAS, according to the websites RedFin and Zillow, the average rent in Collier County for a 2/2, as of April 19, 2022, was $2,950; and WHEREAS, part II of chapter 83, Florida Statutes, commonly known as the "Florida residential Landlord and Tenant Act" ("the Act'), applies to the rental of residential dwelling units and sets forth the rights and duties of landlords and tenants; and WHEREAS, the Act does not provide specific notification requirements for landlords seeking to increase rental rates; and WHEREAS, there are programs which are available to assist tenants in paying their rents, which application process takes a minimum of 30 days; and 111�. . Cko Packet Pg. 49 9.B.b WHEREAS, in order to give tenants sufficient time to take advantage of these programs, and to otherwise assist them, Collier County proposes to enact an ordinance that requires 60 days written notification be given by Collier County residential landlords to their long term tenants prior to increasing the tenants' rent beyond 5 percent; and WHEREAS, other states including Alabama, Alaska, Arizona, California, Indiana, Iowa, Kansas, Massachusetts, Missouri, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, and Texas, have issued laws that require landlords to provide notice to their tenants prior to increasing their rents; and =_ L O WHEREAS, accordingly, this Board desires to require that residential landlords in w unincorporated Collier County who proposes to increase the rents of their tenants by more than five percent shall provide such tenants with advance written notice of such increase. 00 0 N N NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY �0 COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: c SECTION ONE: Title and Citation This Ordinance shall be known and cited as "The Collier County Fair Notice to Tenant Ordinance." SECTION TWO: Findings The Board hereby ratifies and reaffirms the above whereas clauses and incorporates them as if fully set forth herein as the Board's legislative findings. SECTION THREE: Fair Notice to Tenant on Rent Increase More Than Five Percent A residential landlord that proposes to increase the rental rate by more than five percent at the end of a lease for a term of one year or longer must provide 60 days written notice to the tenant before the tenant must either: (1) accept the proposed amendment; (2) reach an acceptable compromise; or (3) reject the proposed amendment to their tenancy. If the required 60 days written notice has been provided and the tenant has not agreed to the proposed amendment or an acceptable compromise, the landlord may impose the proposed amended term(s) or require the tenant(s) to vacate the residence. SECTION FOUR: Violations and Penalties All violations of this ordinance may be processed according to the Collier County Consolidated Code Enforcement Ordinance (Ord. No, 2010-04, as amended) and per the provisions of F.S. chapter 162, parts I or II, as may be applicable. A violation of this ordinance shall be punishable by a fine not exceeding $500.00. A separate penalty may be imposed for each violation of this ordinance. �A0 j Packet Pg. 50 9.B.b SECTION FIVE: Applicability of Ordinance The requirements of this ordinance shall apply within the unincorporated areas of Collier County. Except as set forth herein, all other provisions set forth in part II of chapter 83, Florida Statutes, as such may be amended, shall govern residential tenancies. SECTION SIX: Conflict and Severability In the event this Ordinance conflicts with any other ordinance of Collier County or other appliable law, the more restrictive shall apply. If any phrase or portion of the Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. O SECTION SEVEN: Inclusion in the Code of Laws and Ordinances c a� The provisions of this Ordinance shall become and be made part of the Code of Laws and Ordinances of Collier County, Florida. The sections of the Ordinance may be renumbered or relettered co to accomplish such, and the word "ordinance" may be changed to "section," "article," or any other appropriate word. T SECTION EIGHT: Effective Date (' This Ordinance shall become effective upon filing with the Secretary of State. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this day of ATTEST: CRYSTAL K. KINZEL, CLERK By: - , Deputy Clerk ApproveMs gality: Jeffrey ow, County Attorney NI-1*1A BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA William L. McDaniel, Jr., Chairman Packet Pg. 51