Alexandria plans to hold a first reading in April of an ordinance that would require regulation and registration permitting for single-family homes for rent in the city.
The city discussed the ordinance’s language at its March 20 meeting. The ordinance stems from the city’s opposition to Kentucky House Bill 173, which would prohibit it from enforcing a registry of landlords or residential rental properties.
HB 173 prohibits any local government from adopting or enforcing a registry of landlords or residential rental properties for any purpose, including safety assessments of rental units and requiring landlords to conduct lead hazard reports of rental units.
The Alexandria City Council unanimously passed the resolution opposing HB 173 at its Feb. 20 meeting.
Alexandria Councilmember Stacey Graus has been helping to lead the charge on this conversation.
“I think it’s necessary, so we’re getting ahead of this,” Graus said. “It hasn’t run us over yet, but I think it’s coming down the track with more institutional investors coming in. We need to make sure that they’re not just buying houses and then putting for rent signs up, and they’re not wanting any work.”
The ordinance, which would take two readings and a majority vote to pass, would require a one-year registration permit and an inspection to ensure safety. Alexandria City Attorney Mike Duncan said he left the registration fee blank. That will be discussed at or before the first reading.
He said the concern is with large investment companies coming into Alexandria, buying homes, putting them up for rent without inspections, and then leaving them to sit without upkeep and maintenance. Graus said this would also prevent families from moving into the city and buying homes.
Duncan said the ordinance’s current language applies to anyone owning one or more homes. Graus said they could change it to two.
Graus said his intentions are not to affect folks who may own a family home and want to rent it out.
“We had originally talked about that, you know, making it two, so it’s not you’re buying your grandmother’s house and then renting it out,” Graus said. “I don’t have a problem modifying that, so it’s at two. I think most of the investors that are going to want to do this aren’t going to have just one house.”
During the meeting, Alexandria Councilmember Tom Baldridge said he was ok with leaving the language at one house.
“I think everybody should be subject to this,” he said.
Duncan said the ordinance addresses the negative effect of institutional buyers purchasing homes and throwing them on the market, but it also focuses on safety for renters.
“As Mr. Baldridge pointed out, it probably should apply to all rental homes for that part of it,” Duncan said.
Graus said he agreed with that.
Alexandria Councilmember Bob Strong asked if any other cities were doing this. Duncan said he wasn’t aware of any.
Graus said he was thinking around $250 a year for the registration fee, but he was less concerned about that aspect and more about requiring inspections. If someone doesn’t register, Graus said they would find out when they send out tax bills.
“They pay for the inspection, but we get to say who’s qualified to do it, and then if there are problems, and they need to go in and fix those problems for safety issues, and they pay for another inspection to make sure they did fix those problems,” he said. “That’s the key.”
Duncan said Alexandria’s code enforcement personnel could do the reinspection to ensure the work was done correctly.
“I am concerned. Is there going to be an undue burden on the city?” Alexandria Councilmember Patrick Blair said. “Who’s going to administrate all this, and have we thought through that time and effort that goes through that and who’s plate that falls on? I just think there are a couple of questions; let’s do this at a pace that still meets the end goal of July 1.”
Duncan said the main reason for discussing the idea now is to get the word out so that people who already own rental properties can learn about it.
Before the next reading, Blair said he would like to know at least a rough estimate of the number of homes they’re talking about in Alexandria and hear from the community first.
This ordinance would not affect apartments.
Alexandria Mayor Andy Schabell said he would vote no on the ordinance as it stands right now.
“I don’t know how you would state it [the ordinance] to get to these big companies,” Schabell said. “I have no problem putting it on these big companies that are making millions and millions of dollars and are keeping people from having affordable housing. I’m afraid of keeping young people from being able to invest a good investment.”
