Fiscal Note
No expenditure required.
Title
AMENDED THIRD SUBSTITUTE - Creating Section 32.17 of the Madison General Ordinances to establish regulations for self-help repairs of leased premises by tenants in addition to rent abatement, and amending Section 32.04(2) of the Madison General Ordinances to establish a procedure for notice of eligibility to seek self-help repairs.
Body
DRAFTER'S ANALYSIS: This proposal will permit a tenant to have repairs made to their living unit, if the building owner has failed to comply with orders from the Building Inspection Unit by the original or extended due date. The tenant must give notice to the landlord that they intend to use these self help procedures. Repairs must be done by qualified professionals, as required by law. The cost of repairs may be deducted from rent. This self help repair procedure is in addition to rent abatement.
***********************************************************************************
The Common Council of the City of Madison do hereby ordain as follows:
1. Section 32.17 entitled "Self Help Repairs" of the Madison General Ordinances is created to read as follows.
"32.17 SELF HELP REPAIRS.
(1) Eligibility As an addition to the rent abatement procedures contained in Sec. 32.04, MGO, if a landlord of a rental premises fails to comply with an order of the Inspection Unit of the Department of Planning and Development by the original or extended due date and after the issuance of the letter of eligibility for rent abatement, unless such due date is found to be unreasonable upon appeal to the Board of Building Code, Fire Code and Licensing Appeals pursuant to Sec. 29.18(3) of the Madison General Ordinances, the tenant may elect to cause repairs to be made to correct the violations contained in the order, in accordance with this section 32.17, MGO and deduct the cost of those repairs from their rent, pursuant to this section. If said order of the Inspection Unit contains more than one item that has not been completed by said due date, the tenant may elect to seek rent abatement for one or more items and self help repairs.
(2) Notice. Prior to commencing self help repairs, the tenant shall send a notice to the landlord, by first class mail, return receipt requested, at the address provided by the landlord to the tenant pursuant to Sec. 32.08(1)(b), or if the premises are an owner occupied structure containing no more than four (4) dwelling units, to the owner's residence. The Notice shall contain substantially the following information:
(a) The tenant's statement that the tenant intends to make self help repairs to the property.
(b) The name of the tenant.
(c) A list of the work to be performed. The list shall contain only work necessary to correct the deficiencies found by the Inspection Unit that were not completed by the original due date.
(d) The name of the persons who will perform the work, including the name of any contractors, subcontractors or other persons hired by the tenant. (e) The date that work will be commenced. Such date shall not be less than ten (10 ) days after the date of mailing the notice.
(f) If the tenant intends to perform part or all of the work, a good faith estimate of the number of hours needed to complete the work by the tenant.
This notice requirement shall be construed liberally in favor of the person giving notice. If the landlord has actual notice that the tenant intends to use this self help procedure to correct the items in the Order of the Building Inspection Unit, the tenant shall not be barred from deducting the cost of the self help repair from their rent because of a deficiency in meeting this notice requirement.
(3) Commencement of Work.
(a) No work may be commenced by the tenant until ten (10) calendar days after the tenant has mailed, first class return receipt requested, the notice provided in Sub. (2). The notice provided in Sub. (2) may not be mailed more than ten (10) calendar days before the original due date provided in the original order of the Building Inspection Unit. After ten (10) calendar days, if the landlord has not either: commenced the work contained in the order of the Building Inspection unit using their own employees and contractors, or agreed to do the work by assuming direct responsibility for supervising and compensating the contractors retained by the tenant under the schedule previously negotiated by the tenant and the contractor, then the tenant may commence the work. If the landlord agrees to commence the work to correct the deficiencies, the tenant shall make reasonable efforts to accommodate the work and to permit access to the dwelling unit. If the landlord agrees to commence the work to correct the deficiencies, but substantial compliance is not obtained within 30 days of commencing the work, the tenant shall again be eligible for the rent abatement procedures contained in Sec. 32.04, MGO, or the tenant may immediately proceed to complete the work and may deduct payments made by the tenant for work in the manner provided herein.
(b) The ten (10) day limit in this paragraph does not apply if the Inspection Unit has issued orders for work that relates to health and safety that must be completed in less than ten (10) days. In such cases, the tenant may commence work within twenty-four (24) hours of giving notice.
(4) Scope of Work to be Deducted. No rent deduction may be made by the tenant for payment for any repairs or work other than work done to correct the code violations outlined in the order of the Building Inspection Unit that were not corrected by the original due date.
(5) Rent Deduction. At the time rent is due, the tenant shall submit copies of all invoices for the work to the landlord along with an itemized statement indicating the actual cost of repairs paid for by the tenant and lien waivers from all contractors for work done. The tenant may deduct the entire amount of those repairs for which the tenant has a payment receipt and a lien waiver from contractors and suppliers, from the total amount of rent due. If the actual amount of the receipt for the work or materials exceeds one periodic rent payment, the excess shall be applied to future rents due until the entire amount paid by the tenant for the work or materials has been deducted from rent. In the event that tenants or co-tenants who pay separate rent have jointly completed the work, they may each deduct a pro rata share of the cost of the repairs from their respective rent payments.
If the owner files a letter of objection (copied to the tenant) with the Building Inspection Unit within ten (10) days of receiving notice from the tenant of intent to make repairs under this ordinance, the tenant cannot reduce the rent under the provisions of this ordinance until determined eligible for rent abatement by a Hearing Examiner, pursuant to Sec. 32.04, MGO. For those items determined to be eligible for rent abatement, the landlord will reimburse the tenant one hundred and twenty-five percent (125%) of the costs for repairs as determined by the Hearing Examiner.
(6) Who May Perform Work; Permits Required. When State law, the Wisconsin Administrative Code, Madison General Ordinances or other applicable regulations require that a licensed professional or state-credentialed dwelling contractor perform the work to correct the deficiencies, including architectural, design, surveying, electrical, plumbing, heating and air conditioning work, no one other than a properly licensed professional or state-credentialed dwelling contractor shall perform such work. The tenant shall not perform any work themselves when a licensed professional or state-credentialed dwelling contractor is required to perform the work, nor shall the tenant permit such work to be done by anyone other than a properly licensed professional or state-credentialed dwelling contractor qualified to do the work. A tenant may deduct the cost of materials used by the tenant if the tenant chooses to complete the work themselves. A tenant may deduct the cost of their labor from rent at the hourly rate provide in Sec. 4.20(3), MGO., not to exceed the number of hours stated in the estimate provided pursuant to Sec. 32.17(2)(f), MGO. All work to be completed must be done in a workmanlike manner and must comply with all applicable state and City codes and regulations as provided in the Madison General Ordinances. No work may be commenced by the tenant until all applicable permits and regulatory approvals are obtained. If a permits or approvals are required to commence the work, the tenant shall obtain all applicable permits and approvals and may deduct the fees from the rent, in the manner specified in sub (5).
(7) Lien Waivers. Any contractor shall forward any lien waivers directly to the tenant who contracted the work. The tenant shall forward all lien waivers from contractors to the landlord along with the receipts deducted from the rent.
(8) Eviction or Retaliation Prohibited. No person or tenant who complies with this section shall be evicted for nonpayment of rent because said person or tenant has elected to act under this section 32.17 and has deducted the cost of work from rental payments. No person or tenant shall be evicted or retaliated against for giving either verbal or written notice to the landlord that they intend to use the self help procedures under this section 32.17. It shall be presumed that any attempt to terminate the tenancy of such tenant or to evict such tenant or to raise such tenant's rental payments or to refuse to renew the tenant's lease or to otherwise harass or retaliate against such tenant during the period commencing when verbal or written notice is first given by the tenant to the landlord that the tenant intends to use these self help procedures, until six months after certification by the Inspection Unit of the Department of Planning and Development of the City of Madison that all violations have been corrected, is retaliation. Such attempt is hereby declared null and void and subject to a forfeiture of not less than $150 and not more than $900 for each attempt. It is further provided that in order to overcome such presumption, the landlord must show by a preponderance of the evidence that such acts by the landlord were based on good cause. "Good Cause" used herein means that the landlord must show a good reason for his or her action, other than one related to or caused by the operation of this ordinance, including but not limited to normal uniform rental increases due to utility increases or other increased costs to the landlord, or for other bona fide, nondiscriminatory business reason.
(9) Effective Date. This ordinance shall take effect one hundred and twenty (120) days after adoption."
2. Subsection (2) entitled "Notice" of Section 32.04 entitled "Rent Abatement" of the Madison General Ordinances is amended to read as follows.
"(2) Notice. A list of addresses of rental properties with uncorrected rent-impairing violations shall be published each week in the official City paper within ten (10) days of the reinspection which reveals noncompliance. Such notice shall indicate that the tenants may be eligible for rent abatement and shall state that any such tenant must request authorization to abate rent within thirty (30) days of publication of the notice of eligibility by the Inspection Unit of the Department of Planning and Development. A copy of the notice shall also be sent by first class mail, addressed to "Occupant" at each rental unit with uncorrected rent-impairing violations, on or before the date of publication of the notice. Together with the copy of the notice there shall be mailed a cover letter including, but not limited to, the following information: Notice of Eligibility to Apply for Rent Abatement - The owner of your apartment has not followed an order from the City of Madison Building Inspection Unit to correct Housing Code violations. Because the owner has not complied, you may be able to get a portion of your rent back pursuant to Madison General Ordinances Sec. 32.04. Along with said cover letter, a letter shall also be included with the copy of the notice, which shall include, but will not be limited to, the following information: Notice of Eligibility to Seek Self Help Repair- In addition to seeking rent abatement, because the owner of your apartment has not followed an order from the City of Madison Building Inspection Unit to correct Housing Violations, you may have the right to correct these violations and deduct the amount of the repairs from your rent, if you follow the procedures in Madison General Ordinances Sec. 32.17."