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2. 2. <br /> CC Work Session <br /> Meeting Date: 08/27/2024 <br /> PrimaryStrategic Plan Initiative: Create a positive image for residential neighborhoods,business districts and key <br /> g corridors. <br /> Information <br /> Title: <br /> Rental Housing License Fees Discussion <br /> Purpose/Background: <br /> At the August 12, 2024 City Council work session,the Council received an update from staff regarding the Rental <br /> Housing Inspections Program. One of the topics discussed that was briefly brought up,but not fully discussed, <br /> was the city code requirement for background checks of property managers and, in some instances,property <br /> owners; and annual rental license fees. <br /> Background Checks <br /> There were a few City Council members concerned that background checks are being conducted on the property <br /> owners. According to city code, a background check is required to be completed if the property owner has access <br /> to the rental unit and acts as the property manager. The city code is modeled after the code other municipalities <br /> have adopted as part of their crime-free housing programs; background checks are common in cities with active <br /> rental housing programs. The requirement is part of the Kari Koskinen Manager Background Check Act. MN <br /> Statutes 299C.67 to 299C.71 require that owners of rental property run background checks on prospective rental <br /> property managers. If the manager has been convicted of a serious crime (murder,rape, stalking, etc)the owner <br /> may not hire the manager or must discharge the manager if the manager has already been hired. The law was <br /> named after Kari Koskinen, a female renter who was murdered by her building manager. The manager had a <br /> previous criminal record that was not disclosed to her. City Attorney Knaak has given his legal option if the law <br /> pertains to property owners. His review is attached. Mr. Knaak's legal opinion is that the statute pertains to third <br /> parties (not owners) employed or applying for employment for such a position. "Manager" is specifically defined <br /> as any employee who has the ability to enter a tenant's dwelling unit as part of their job duties. As Knaak stated <br /> in his response,the city code requires a background check on property owners,there is nothing in law that <br /> precludes the City from requesting this information; he is comfortable that the City's position is very defensible. <br /> City staff, including the Police Department, continue to support background checks on managers and property <br /> owners who have the ability to enter a tenant's dwelling unit for the following reasons: <br /> 1. As stated by Mr. Knaak,the same underlying reasons for the passage of the Koskinen Act related to managers <br /> also relate to the protection of Ramsey residents (renters) from owners who would also have the same kind of <br /> access to the rental premises. The goal of the background check is to protect Ramsey residents from predatory <br /> offenders. <br /> 2. This is common practice. Other cities which the Ramsey program is modeled after have successful rental and <br /> crime-free housing programs that require background checks on property managers and property owners who <br /> have access to the unit to ensure their residents have protection from predatory offenders. <br /> 3. The property owner background checks are supported by the City Attorney,who feels the requirement is <br /> defensible in court of law. <br /> 4. All background information is private information of which the Police Department is the only authority with <br /> access to the information. The police department is checking for predatory offenses. Other city staff do not obtain <br /> private information. Once the background check is completed, the information stays with the Police Department. <br /> Chief Katers notifies the rental housing staff if the background check passed or failed. <br /> License Fees <br />