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10A Guide to Proactive Rental Inspection Programschangelabsolutions.org Government regulated or subsidized: Many localities, including Boston and Seattle, exempt federal, state, or locality-owned or managed buildings, as well as Section Eight and other subsidized housing, because these housing categories are subject to other inspection requirements.54 Should the frequency of these other mandated inspections be reduced,55, 56 it may be advisable to extend municipal rental inspection programs to cover these properties. New-construction: Some localities exempt newly-built housing, as it is presumed to be in good condition. In Santa Cruz, for example, housing built within the preceding five years is exempt from the inspection program.57 Hotels and motels: Non-residential hotels, motels, and other transient housing are also commonly exempted from rental housing inspection ordinances.58, 59 However, given that vulnerable tenants may live in these types of properties on a long-term basis, it may be important to include them in municipal periodic rental inspection programs if no other standards are applied to ensure that they remain in habitable condition. Registration and Licensing of Rental Property Rental Registration In order to implement a PRI program, a locality needs to know what rental properties exist and who owns them.60 To determine this, many localities require owners to register their rental properties or units. Registration requirements are common in systematic rental housing inspection programs, but can also be implemented independently, or in conjunction with other city administrative functions such as business licensing. In addition to informing a locality of the location of rental housing, information gathered during registration may help a locality to inventory its rental housing stock, which can be valuable for planning purposes. For example, registration and licensing can allow municipal housing, commerce, and planning agencies to monitor fluctuations in the number of rental units over time, which may help them plan for growth or reduction, or manage situations like the foreclosure crisis. Frequency of renewal: Localities vary in how frequently they require registration renewal. For example, Kansas City, MO requires annual registration.61 Some localities require registration to be updated when there is a change in ownership, in addition to or in place of renewal on a fixed term basis. Registration fees: Many localities charge fees for property registration (detailed in a later section). Some localities do not charge a fee, but a failure to register may result in significant enforcement fees.62 Rental Licensing In lieu of a registration requirement, some localities require property owners to obtain a license before renting a housing unit. To ensure the habitability of rental units prior to tenant occupancy, localities may require an inspection as a prerequisite to a license. VACANT PROPERTY REGISTRATION Some localities, such as Grand Rapids, require owners to register all rental property – including vacant and abandoned properties.53 Requiring the registration of vacant and abandoned property can help prevent blight in neighborhoods, especially in localities with high foreclosure or vacancy rates.