Number
010115
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
An ordinance relating to payments into rent-withholding escrow accounts.
Sections
200-22-1-a am
200-22-3-a. rc
Analysis
Currently, pursuant to the city's rent withholding provisions, a tenant may commence rent deposits into an escrow account prior to expiration of a 5-day pay or quit notice, or prior to service of a 14-day termination notice. This ordinance would assign responsibility to the owner to notify the commissioner of neighborhood services regarding the service of any notice ending the tenancy or the 5-day pay or quit notice.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 200-22-1-a of the code is amended to read:
200-22. Rent Withholding.
1. NONCOMPLIANCE.
a. Deposit in Escrow. Notwithstanding any other provision of law or any agreement, whether oral or written, if an owner of real property, except rooming houses licensed under s. 275-20, or owner-occupied [[two]] >>2<<-family dwellings, fails or neglects to comply with an order of the commissioner to correct a violation of this code or an order of the commissioner of health to comply with ss. 66-20 to 66-73, upon the expiration of the order to correct those violations, the tenant of the premises is authorized as of that date to deposit rental payments into an escrow account designated by the commissioner. The only violation exempt from the provisions of this section is that rent withholding is not authorized for failure to comply with an exterior painting order that was not issued pursuant to [[subchs.]] >>subch.<< 2 or 3 of ch. 66. Rent withholding is available for failure to comply with an exterior painting order that was issued pursuant to lead poisoning prevention and control regulations or the residential rental property lead-based paint hazard control pilot project, [[subchs.]] >>subch.<< 2 or 3 of ch. 66. Rent withholding is available regardless of whether the commissioner has granted an extension of the order to correct violations, except that rent withholding is not available for failure to comply with an exterior painting order issued pursuant to [[subchs.]] >>subch.<<. 2 or 3 of ch. 66 if the commissioner of health has granted an extension of that order for seasonal considerations. A tenant shall not be prevented from withholding rent if other violations are past due even if exterior paint orders are or are not past due. The tenant may commence rental deposits into the escrow account after the orders are past due, provided that payment is made prior to expiration of a 5-day [[quit or pay]] >>pay or quit<< notice or service of a 14-day termination notice given by the lessor under ch. 704, Wis. Stats. The owner shall be notified of rent withholding authorization by the commissioner by first class mail within 5 days. >>In the event that the tenant has commenced rental deposits in the escrow account, it shall be the responsibility of the owner to notify the commissioner of the service of any of the notices referenced in this section that are served after the tenant has commenced rent withholding, and to provide a copy of such notice to the commissioner. The tenant shall be allowed to deposit rent into the escrow account until the copy of the notice is received.<< It shall be an affirmative defense to a rent withholding under this section to show that the damage or condition on which the violation is based is caused by negligence or improper use by the tenant.
Part 2. Section 200-22-3-a of the code is repealed and recreated to read:
3. RELEASE OF FUNDS.
a. To the owner of record as recorded with the register of deeds at the time of certification by the department. Certification means that the premises, at the time of inspection for certification, are free of any violation of this code and of any violation of subch. 2 or 3 of ch. 66, except for any violation for which the commissioner of health has granted an extension for seasonal considerations.
LRB
APPROVED AS TO FORM
_________________________
Legislative Reference Bureau
Date:_____________________
Attorney
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
________________________
Office of the City Attorney
Date:____________________
Requestor
Department of Neighborhood Services
Drafter
00339-1
lme
4/11/01