Number
071002
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. BAUMAN
Title
A substitute ordinance relating to rent withholding and the fee to maintain the account.
Sections
200-22-1-a am
200-22-1-b rn
200-22-1-b cr
200-22-1-c rn
200-22-3-c-1 am
200-22-3-f am
200-22-3-g am
200-22-3-h-2 am
200-22-3-h-3 rn
200-22-3-h-3 cr
200-22-3-h-4 rn
200-22-3-i am
Analysis
This ordinance revises the city’s rent withholding provisions to allow the department of neighborhood services to correct additional code violations from what is presently allowed under the code, increase monthly service fees on accounts where no transaction has occurred for more than 6 months and allow the department to collect other fees in addition to reinspection fees. The ordinance also provides the department the ability to distribute one month’s rent to a renter for the cost of relocation.
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 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 66-22, upon the expiration of the order to correct those violations >>and written notification by the department<<, 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 [[subch. 2 of ch. 66]] >>ch. 275<<. >>Rent withholding is available regardless of whether the commissioner has granted an extension of the order to correct violations.<<Rent withholding is available for failure to comply with an exterior painting order that was issued pursuant to lead poisoning prevention and control regulations of the residential rental property lead-based paint hazard control pilot project, subch. 2 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]] >>Rent<< withholding is not available >>if the only violation is<< for failure to comply with an exterior painting order issued pursuant to subch. 2 of ch. 66 [[if]] >>and<< 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, >>and he or she has been notified in writing by the department,<<provided that payment is made prior to expiration of a 5-day 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 200-22-1-b and c of the code is renumbered 200-22-1-c and d.
Part 3. Section 200-22-1-b of the code is created to read:
b. If the only violation remaining is failure to comply with exterior painting pursuant to ch. 275 or a violation that has been granted an extension for seasonal consideration, the department shall no longer accept deposits into the escrow account.
Part 4. Section 200-22-3-c-1 of the code is amended to read:
3. RELEASE OF FUNDS.
c-1. Monies deposited in the escrow account may be released by the escrow agent to the owner or agent upon presentation of approved itemized receipts for the work completed and upon certification by the department that the receipts reasonably match the work done. The escrow account shall maintain sufficient funds to cover administrative charges and maintain a minimum balance of [[$250]] >>$150<<.
Part 5. Section 200-22-3-f of the code is amended to read:
f. The commissioner may withdraw monies from such escrow account to have the department of public works or a private contractor certified under s. 95-14 make repairs to protect the health, safety and welfare of the tenants. Such repairs shall include [[but not be limited to the repair of essential services in conjunction with s. 200-21 to secure open and vacant dwelling units, to restore the premise to a weathertight and secure condition, to winterize vacant units where necessary to prevent damage to occupied units and to repair or remove electrical, structural, plumbing and heating unit hazards]] >> violations listed on an order of the commissioner to correct a violation of this code<<.
Part 6. Section 200-22-3-g of the code is amended to read:
g. If the occupancy of a premises is ordered to be discontinued pursuant to s. 200-11-4 or 200-11-5, the commissioner may use such escrow monies to pay the displaced tenants relocation costs up to the amount the tenant has deposited in escrow. >>If the tenancy of the premises is caused to be discontinued for reasons other than eviction by the owner of record at the time the rent withholding application was filed, the commissioner may use such escrow monies to pay the tenants’ reasonable relocation costs up to the equivalent of one month’s rent upon proof of displacement, unless an affirmative defense is made by the property owner to the department as described in sub. 1-c.<<
Part 7. Section 200-22-3-h-2 of the code is amended to read:
h-2. $5 monthly to maintain the account when no transaction occurs during the month >>except as specified in subd. 3<<.
Part 8. Section 200-22-3-h-3 and 4 of the code is renumbered 200-22-3-h-4 and 5.
Part 9. Section 200-22-3-h-3 of the code is created to read:
h-3. $25 monthly to maintain the account when no transaction has occurred for more than 6 months.
Part 10. Section 200-22-3-i of the code is amended to read:
i. The commissioner may also withdraw monies from an escrow account to pay for [[building inspection reinspection fees under s. 200-33]] >>any department fee authorized by the code<<.
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
MET
12/3/07
LRB07535-2