Huntington city officials want to close a loophole in the city’s charter that allows some landlords to avoid safety inspections and fees by not having to obtain a rental permit.
Some LLCs and corporations do not apply for the required rental permit to avoid permit fees and inspections, city officials said. The landlords cite an exemption from a rental permit In Location code if the apartment is occupied by the owner.
The city government wants to update the city code to require LLCs or corporations to provide proof that a resident of a rental property owns 51% or more of the LLC or corporation and is therefore exempt from rental approval. The change would not apply to trusts.
Councillor Ed Smyth said the proposed change would make rentals more secure by allowing inspections or having an owner on site. He added it would also help owners “operate under the legal protection of a limited company”.
The city requires a rental permit for most apartments that are to be rented. A rental permit is not required if part of the property is occupied by the owner or the owner’s immediate family lives in the apartment. The city also does not require a rental permit if there is an on-site management office.
But Smyth said some properties owned by the LLC are being rented to people who are not related to anyone associated with the LLC.
City officials have said in the past that they were unable to address tenant complaints such as lack of heat, exposed plumbing and overcrowding at some LLC-owned rental properties because they did not have city rental permits.
When asked by the city’s security department, the LLC’s managing director explained that a member of the LLC lived on the property and therefore no permit was required.
Smyth said the loophole in the law is that city ordinance does not require an LLC or corporation to provide proof that it owns the property or that a family member lives there.
Non-owner-occupied rental properties require a permit and are inspected every two years by either the city or a certified third party, such as a licensed engineer or certified architect. ADUs (accessory dwelling units) also require a permit from the city and are subject to city inspections every two years. The inspections coincide with the rental permit, which costs $475.
If the bill passes, LLCs and corporations would be subject to the same inspection schedules and fees as rental properties that are not occupied by owners.
Roger Weaving, chairman of the Huntington Township Housing Coalition, which advocates for affordable housing in the town, said he thought it would be a good idea to include the proposed language in the town charter.
“There are a lot of places where businesses hide their stuff,” Weaving said. “If you claim one of the primary owners lives there, you should be able to prove it.”
He added that he does not believe it will impact affordable rents and that it will most likely target landlords of market-rate apartments.
“To get an affordable rating, you have to look very closely. Usually it’s done by companies where people don’t claim to live,” Weaving said.
A public hearing on the matter was held on August 6. The city has 90 days from the public hearing to approve the change.
Huntington city officials want to close a loophole in the city’s charter that allows some landlords to avoid safety inspections and fees by not having to obtain a rental permit.
Some LLCs and corporations do not apply for the required rental permit to avoid permit fees and inspections, city officials said. The landlords cite an exemption from a rental permit In Location code if the apartment is occupied by the owner.
The city government wants to update the city code to require LLCs or corporations to provide proof that a resident of a rental property owns 51% or more of the LLC or corporation and is therefore exempt from rental approval. The change would not apply to trusts.
Councillor Ed Smyth said the proposed change would make rentals more secure by allowing inspections or having an owner on site. He added it would also help owners “operate under the legal protection of a limited company”.
The city requires a rental permit for most apartments that are to be rented. A rental permit is not required if part of the property is occupied by the owner or the owner’s immediate family lives in the apartment. The city also does not require a rental permit if there is an on-site management office.
But Smyth said some properties owned by the LLC are being rented to people who are not related to anyone associated with the LLC.
City officials have said in the past that they were unable to address tenant complaints such as lack of heat, exposed plumbing and overcrowding at some LLC-owned rental properties because they did not have city rental permits.
When asked by the city’s security department, the LLC’s managing director explained that a member of the LLC lived on the property and therefore no permit was required.
Smyth said the loophole in the law is that city ordinance does not require an LLC or corporation to provide proof that it owns the property or that a family member lives there.
Non-owner-occupied rental properties require a permit and are inspected every two years by either the city or a certified third party, such as a licensed engineer or certified architect. ADUs (accessory dwelling units) also require a permit from the city and are subject to city inspections every two years. The inspections coincide with the rental permit, which costs $475.
If the bill passes, LLCs and corporations would be subject to the same inspection schedules and fees as rental properties that are not occupied by owners.
Roger Weaving, chairman of the Huntington Township Housing Coalition, which advocates for affordable housing in the town, said he thought it would be a good idea to include the proposed language in the town charter.
“There are a lot of places where businesses hide their stuff,” Weaving said. “If you claim one of the primary owners lives there, you should be able to prove it.”
He added that he does not believe it will impact affordable rents and that it will most likely target landlords of market-rate apartments.
“To get an affordable rating, you have to look very closely. Usually it’s done by companies where people don’t claim to live,” Weaving said.
A public hearing on the matter was held on August 6. The city has 90 days from the public hearing to approve the change.
