If you don’t have enough government in your life, this will make you happy.
If you own rental property in the Oklahoma City metro area, you better pay attention.
The City of Midwest City recently passed a city ordinance that requires property owners who own rental property in Midwest City to register those properties with the city by July 1, 2011.
Starting in 2012, there will be $50 per property registration fee for rental houses, and $10 per unit registration fee for multi-family units. If it was just another tax assessed on landlords that would probably be something we could all grumble about a little bit and go about our business.
However, Midwest City has taken cues from Del City which has it’s own ordinance regarding rental properties. Del City requires code inspections at rental properties, making landlords possibly criminally liable if repairs are not made to properties. Many investors have sold or want to sell their Del City rentals because of this program.
On the City of Midwest City web site it states that the program was established “to protect and promote the health, safety and welfare of the residents of the city, particularly those who live in rental properties or the neighborhoods surrounding them. It is designed to promote the continued maintenance of safe and secure rental properties; to facilitate accurate ownership and local agent information; to preserve the quality of existing housing stock; and, to ensure that rental housing is being operated and maintained in a manner that does not foster blight and deterioration or become a nuisance to its surroundings.”
The city puts some pretty impressive spin on the vision of this ordinance. However, the fact is they already have a pretty effective mechanism to take action against landlords who don’t keep up their properties.
Instead, the city requires landlords to follow the requirements of the most recent version of the International Property Maintenance Code. Until I read the ordinance, I had never even heard of this set of standards. It is a comprehensive code that covers just about every aspect the interior and exterior maintenance of a property, including mechanical, electrical, plumbing, heat and air, fire prevention and suppression, etc.
The least expensive “most recent” addition of this code is the 2009 version which can be purchased on line for $24. I confess I didn’t jump in and immediately buy the thing. But I did download an older (2003) version I found by googling “international property maintenance code”.
What I found were 40 pages of specifications for maintaining property. Tons of nitpicky details.
My concern is that even the best maintained 20-year old or older rental property in Midwest City is going to come up short on at least some of these.
The way the ordinance is written, an owner is out of compliance with this ordinance if they fail to register the property or they are not in strict compliance with the International Property Maintenance Code. The penalty for noncompliance is set NOT LESS THAN $100 and NOT MORE THAN $500 per “non-registered” property (I assume they also mean a registered property that has a violation of the International Property Maintenance Code) EACH DAY OF THE VIOLATION.
Unfortunately, the ordinance does not indicate what type of notice will be make to the owner of the property. Will the city make notice about violations so the owner can address them? It’s just not clear.
In addition, the ordinance allows the city to revoke the rental property registration for just cause, including:
1) including false information on the registration form, or
2) a property has failed to comply with two (2) or more of the requirements, or the owner has two (2) or more violations of the International Property Maintenance Code for any property within a given registration period, or
3) Change in property ownership.
The ordinance makes clear their is no appeal process. Once your registration is revoked, that’s it.
What would be the consequences of revocation? Clearly, that owner would not be able to lease out the property. Suppose their is a legal lease in place with the tenant. How can the city legally force an end to this lease agreement? It seems that the owner would be forced to sell the property if they could not lease it.
Another question is what would happen to an owner of multiple properties if the city revokes their registration. Would the city revoke registration of all properties an owned by an individual or entity?
It would be nice to get some clarification on these issues.
I can just about guarantee that other cities are taking notice of this Midwest City ordinance. What if Oklahoma City adopted a similar ordinance? I for one would not be a happy camper.
The ordinance puts the screws to landlords, the adoption of this ordinance by other cities in the metro area represents a threat to landlords.
There has been some talk of a legal challenge to the Midwest City ordinance. Stay tuned.
March 4th, 2011 at 8:18 am
If you think these codes make life hard in Oklahoma…you should see how tough things can be for property maintenance in London!!
Great article though, a very interesting read.
March 5th, 2011 at 1:31 pm
Property Maintenance London: What’s your biggest nightmare story about code enforcement in London?
March 5th, 2011 at 8:17 pm
It doesn’t seem like they did a very good job making the public aware this ordinance was being considered. I receive the Midwest City newsletter but don’t recall receiving it, and didn’t get any notice about my rental properties there. The City has set up temporary utilities during rehab and knew I had rentals based on that, but I received no notice. That circumvented the ability of local landlords to speak to their City Council to express our concerns prior to approval of the ordinance.
I understand their desire to address unresponsive landlords, mainly those who live out of Oklahoma County. However, this ordinance charges ALL landlords $50 per property. It is arbitrary and capricious – why not actively cite the problem landlords instead of punishing the responsible ones too? Just as investors/rehabbers/landlords have fled Del City, this may result in a similar response in Midwest City.
I’ve been told more than once I take the “worst” house on the block and make it the “best” house on the block, rehabbing distressed properties into quality rentals that improve neighborhoods. And this is the thanks I get from Midwest City?! Tell me again why I should buy there, instead of looking elsewhere!
This sounds more like a quick source of revenue for the City of Midwest City. They will get $50 per property from the responsible landlords, and they will spend about three minutes typing the information in their computer. Another example of the size and scope of government getting out of control.
Will MPREIA have a formal response?
March 6th, 2011 at 12:11 am
Several legal problems:
1.
March 6th, 2011 at 10:37 pm
Someone asked me post this information for them:
1. Under the due process clause of the Oklahoma Constitution, “No person shall be deprived of life, liberty, or property, without due process of law.” That means cities must give citizens notice of a fine and an opportunity to be heard in their defense. Cities can’t authorize their police officers to go around handing out traffic tickets without giving the ticketed citizens the right to be heard in an impartial forum (a court).
2. Under the excessive fines clause of the Oklahoma Constitution, “Excessive bail shall not be required, nor excessive fines imposed, nor cruel or unusual punishments inflicted.” Cities can’t go around fining property owners thousands of dollars because their tenants have not mowed their yards for a few weeks.
3. Under the jury trial clause of the Oklahoma Constitution, “The right of trial by jury shall be and remain inviolate, except in civil cases wherein the amount in controversy does not exceed One Thousand Five Hundred Dollars ($1,500.00), or in criminal cases wherein punishment for the offense charged is by fine only, not exceeding One Thousand Five Hundred Dollars ($1,500.00).” If cities try to pile on fines in excess of $1,500, landlords should demand juries. Municipal courts are hardly in a position to withstand the time, expense, and resources that would be needed to handle a flood of jury demands.
4. Under the takings clause of the Oklahoma Constitution, “Private property shall not be taken or damaged for public use without just compensation. Just compensation shall mean the value of the property taken, and in addition, any injury to any part of the property not taken.” The government has a lot of leeway to confiscate property (e.g., contraband or property used to violate the law). But I question whether a city could “take” someone’s real estate just for violating a code. And a “taking” can occur when the government regulates things out of existence. So the City “revokes” a landlord’s permit. So what? The landlord can’t rent the house anymore?
5. These are based on the Bill of Rights in the U.S. Constitution, and the federal analogues apply to the states and cities through the fourteenth amendment.
Here’s an article of interest:
http://www.thestate.com/2010/11/27/1579503/mixed-results-for-citys-landlord.html
http://www.cleveland.com/chagrinsolonsun/index.ssf/2011/03/rental_occupancy_permit_progra.html
Oh, and of course, existing rental properties are grandfathered. Cities can’t force the owners of property that was in compliance with a former code to upgrade the properties to comply with a new code.
One final thing. Inspectors have to have warrants (or consent) to enter upon or within private property, and warrants can only be issued upon probable cause.
March 8th, 2011 at 9:28 am
I see this as another type of tax being placed on the poor for the city’s revenue generation for profit (which will end up as bloated bureaucracy when they have many employee to manage the current and new systems involved to support this tax). Why is the tax being placed on the poor? I believe most landlords will raise the rents on every tenant to cover the costs and administration of this tax. Not to mention, also increase the rent for tenant damage because the damages tenants do to properties will affect city inspections since all landlords know the life span on fixtures and other items on rental properties is greatly decreased (even by good tenants) compared to homes owned and occupied by home owners. This will end up hurting everyone.
I am disappointed to see that many city’s around this country are turning to other means of class assault and anti-business to generate revenue and I am surprised that Oklahoma is now following this trend. It is my hope that as we continue to vote out the status quo in congress and local municipalities as we have seen in the last election that some good changes will come.
March 8th, 2011 at 7:39 pm
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March 11th, 2011 at 5:58 am
Part of me feels like this is a great thing to do. There are so many kids who need loving homes. I just don’t feel like my parents are right for this, though. For starters, they have nowhere to put another kid. They already have an autistic 8 year old who requires a ton of care, and my dad is stretched thin working 2-3 jobs to support them all. My other younger brother is 20, and though he’s part-time in college, he has Asberger’s and isn’t capable of living on his own yet. And there’s a selfish part of me that’s concerned that she’ll now completely ignore me. My fiancee and I have discussed wanting children soon, and I’m worried she’ll have her hands too full to be able to be a grandmother. With the 8-year-old getting older, I had hoped that she’d be able to take more of an active role in my life, if I was to have a child. Am I totally wrong and selfish in this?
March 14th, 2011 at 10:13 am
Everyone needs to pull the application and look at it. The version I have requires drivers license number AND date of bith AND social security number of contact for management and owner. Why not add income and make it a credit app?
Also, how can a municipaility arbitrarily regulate companies licensed to do business in the state. I am a broker with 20 years management expereince throughtout the state but since I don’t live in Oklahoma county I have to find someone else to manage property there? Is there no “intra”state commerce infringement clause?
March 15th, 2011 at 6:38 pm
Those landlords or property managers with rentals in Midwest City should sign up at http://www.mwclandlords.org
On March 4, 2011, forty one rental property owners and property managers met to dicuss the ordinance and the possibility of getting the ordinance withdrawn or changed to an acceptable form. As you know, the more people who speak up, the more attention we will get from the city. We will be attending the City Council meeting on March 22nd, at 7:15pm in the council chambers in the City Hall, which is located on the NE corner of Reno and Midwest Blvd. Please join us at that meeting.
March 15th, 2011 at 6:39 pm
Landlords and property managers with rentals in Midwest City should sign up at http://www.mwclandlords.org
On March 4, 2011, forty one rental property owners and property managers met to dicuss the ordinance and the possibility of getting the ordinance withdrawn or changed to an acceptable form. As you know, the more people who speak up, the more attention we will get from the city. We will be attending the City Council meeting on March 22nd, at 7:15pm in the council chambers in the City Hall, which is located on the NE corner of Reno and Midwest Blvd. Please join us at that meeting.
March 19th, 2011 at 12:25 am
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March 21st, 2011 at 4:53 am
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March 21st, 2011 at 6:56 am
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March 21st, 2011 at 12:39 pm
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March 24th, 2011 at 11:40 pm
Of course the city council passed this ordinace without notice or holding hearings, that’s how pogroms work. It’s capricous, discriinatory and a total invasion of privacy – collecting ss#’s and dates of birth – how does that fullfill the registration process? Are we going to have to wear yellow L’s on our shirt sleeves too?
March 28th, 2011 at 9:36 am
So much bad information is being placed out there on this ordaniance. First, it was publicized and on the discussion agenda 2 months. That how much people pay attention to what going on. And Stefani, the landloards themselves placed little name tags on thier own that said LANDLORD at the last city council meeting.
md
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June 10th, 2011 at 10:53 pm
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June 12th, 2011 at 10:22 am
I am an attorney in the OKC metro. I have a family member with property located in Del-City. We are in the process of drafting a lawsuit to either declare the property maintenance cope unconstitutional or put in place an injunction against the city’s use of the code. I believe there are multiple legal avenues available to deter a City from using this code; you have to cost the City money and get it on the news.
One thing you can be sure of, if property owners don’t fight and protect their property rights, their rights will be taken. You have to remember, our City and State officials are not making sure they are protecting the rights of citizen property owner, particularly in the smaller towns. Note that the individuals enforcing these laws usually have a difficult time reading the code and an impossible time making sure they are not violating your constitutionally protected rights.
Additionally, if a City adopts a code which is used to harass property owners or any other class of citizens, you have to take the steps to get those individuals removed from office.
One last tidbit, I was recently made aware of a situation where a city code enforcer for Del-City instructed a property owner to make his tenant move or he was going to cite the property owner for code violations. If the tenant was made to move, the citation would be forgotten and that’s exactly what happened.
July 15th, 2011 at 6:48 pm
Since the passage of the MWC landlords ordinance there has been some changes. the new application doesnt require as much info as the original one. The 50.00 fee has been reduced down to 16.00 dollars or if the landlord joins the crime free program the fee will be 8,00 dollars however the owner will have to make various changes to the property,A large group of landlord are in the process at this moment to form an association. called the Oklahoma Association of Landlords.should anyone have any rental property in Oklahoma they are welcome to join. as someone said above in another article. several other Cities are watching. It could be in your city next.
July 15th, 2011 at 6:56 pm
The Landlords in Midwest are in the process at this very moment of organizing an origanization called the Oklahoma Association of Landlords/ Should you have any property in MWC you are welcome to join this organization.
Should you have rental property in another City in Oklahoma you may join this organization. As someone stated in another article. several other cities are watching what happens in MWC. If MWC gets away with this rediculas ordinance then they will jump on the bandwagon and do the same.
August 13th, 2011 at 4:27 pm
On August ll,2011 a meeting was held at the DelCity Church of Crist and about 60+ members showed up and approved the Oklahoma Association of Landlords. The members approved the election of Phyllis Muncy as president. Mike Hixon as Vice President and Roy Snell as Treasurer.There were five members chosen to the board.The committee is still seeking several More to be on the board. You do not have to be a resident of MWC to join. If you have rental property in MWC or any where in the state you may join. the Yearly fee is 25.00 dollars. The website is oklahomaassociationoflandlords.org. or you can call Phylolis Muncy at 210-1327 for more information.
November 12th, 2011 at 5:08 pm
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