MOUNT VERNON — When the Real Estate Investment Association met Wednesday night, three members of Mount Vernon City Council were present to answer questions about proposed legislation which would require landlords to submit a list of their tenants to the city. The purpose of the legislation is to find those individuals who are required to, but are not, filing city income tax returns.
Council members John Fair, Mike Hillier and Rebecca Jordan listened, and asked for possible solutions, to concerns voiced by landlords about the proposed occupancy report. The report would have to be submitted twice a year, in January and July, and would list the tenants’ name, address, and move in and move out dates.
“I see both sides of the issue,” said Fair, who also has a rental unit. “I guess I’m a throwback to the ’60s; I don’t like to have some things run down my throat. On the other side of the coin, it’d be nice if there were some type of dialog. I’m here and want to make an educated decision based on a lot of things.”
Landlord Robert Payne agreed with the need for dialog, requesting that in the future, City Council members contact the REIA board before writing any legislation that would affect landlords..
“That way,” he said, “we feel more a part of the wheel instead of under the wheel.”
Fair said one of the questions he has about the legislation is the definition of tenant. In his rental unit, he said, other people live there other than the one listed on the lease. The legislation is unclear as to who all needs to be listed on the report. Hillier, who also has a rental unit, said he was unclear whether his duplex would be considered one unit or two. The legislation requires all landlords who have two or more properties to file the report.
One of the concerns voiced by the landlords was fairness; all landlords should have to file, not just those with two or more units. Hillier said when he checked into why the legislation stated two or more units, he was told that if someone added on a mother-in-law suite to their home, the suite could be construed as a rental unit. Putting the two or more unit stipulation in would avoid issues such as that.
If the reports are not filed, landlords can be fined $5 a day, up to $100 a day. The legislation is unclear as to whether this fine applies to each tenant, each occupant, each unit or each landlord. Landlord and REIA President Claude Gates questioned how landlords would know the city received the form.
“How do I know they’ve got the names I sent in?” he asked.
“Am I going to get a confirmation receipt?”
If the report was submitted via e-mail or fax, there would be an electronic confirmation of it being sent; however, if it was mailed in or dropped off to the tax department, no confirmation receipt would be available.
Fair said he spoke with officials of Fredericktown and Gahanna, both of which have a similar ordinance on the books. Gahanna’s ordinance has been in effect 19 years; landlords are required to file four times a year. However, he said officials of both municipalities said their ordinance is not enforced.
Other concerns voiced by the landlords include:
•That the legislation exempts retirement communities. It was pointed out that the definition of senior is age 55 and up. Landlord Steve Kennedy said this is the fastest-growing segment, and many in this demographic category are income-producing citizens.
•That students living in on-campus housing are exempt. Hillier said the purpose of the legislation is to find those who live in Mount Vernon but work outside the city. He said probably not too many Mount Vernon Nazarene students travel outside the city to work.
The landlords did offer alternatives for the city to consider, one of which involved working through the water department. Currently, many landlords have the water bill in their name rather than the name of the individual tenants. Kennedy suggested the possibility of the city requiring a deposit in order to turn on the water, similar to deposits required to turn on gas or electric. He said the village of Centerburg has started collecting such deposits. The city could gather information such as name and Social Security number when the deposit is collected; the information would change only when a tenant left or a new tenant moved in.
Kennedy also said if the city would go after water bills, he would put the bills in his tenants’ name rather than his.
“Maybe the compromise would be that large complexes would have to file the report, but small singles or duplexes could be put in the tenants’ name,” he said.
Payne agreed, saying if the water is in the tenant’s name, the landlord would not have to file the report. If it’s in the landlord’s name, the landlord would have to file.
Another suggested solution was to have landlords mail a copy of their rental agreement to the city every January; again, the information would change only when a tenant moved in or out.
Along those lines, Payne said if the city would provide a form, landlords could put it with their rental agreements and have the tenants fill it out, listing names of all occupants. The forms would then be updated and sent to the city when a new lease is signed.
Gates also suggested the city tax department work with the state, using a database which could sort by zip code. The database would list everyone working in Columbus, for example, but living in zip code 43050.
The proposed legislation will be up for its third reading at the Nov. 24 meeting of City Council. At that time, the legislation must either be voted on or tabled. Council will hold another public hearing at 7 p.m., prior to the 7:30 council meeting. The landlords were encouraged to meet with Debra Tyson, city tax administrator, before Oct. 24, and to let Derk Demaree, chairman of the Budget and Finance Committee for City Council, know of their questions, concerns and alternatives.
Gates said he appreciated the council members attending Wednesday’s meeting, and that he would be arranging to meet with Tyson.
“I think we made headway with the city,” he said. “I appreciated the council members being there. That’s how you work together as partners.”
