Council tables rental inspection proposal

After hearing from multiple property owners critical of Creston’s proposal to have a rental inspection ordinance, city council agreed Monday to table the issue for further discussion.

The proposal began earlier this year. In May council approved Iowa Inspections, LLC. Council had been meeting with Jason VanAusdall from Iowa Inspections.

All owners of rental property were to comply with city rental code standards. All property owners shall submit an application and registration fee requesting a rental certificate. Upon receipt of an application (informational packet), the landowner contacts the contracted inspector. The contracted inspector conducts an inspection of the premises. When the property passes the requirements outlined in the city ordinance and adopted codes, the contractor saves the information to the shared calendar with the city.

Tom Spencer said the ordinance is a “scam” brought by someone who has done the same work in other towns.

“He has no actual authority to fine anyone,” Spencer said. He continued explaining Iowa Inspections informs city officials and the city police department then issues a citation to the property owner.

Spencer said, earlier this month the Newton City Council suspended it’s rental inspection policy until agreements can be made about the purpose of the inspection. Newton started the rule in 2018. Spencer said Iowa Inspection determines the fees and schedule. In Newton, Spencer said of the 723 rentals 640 were reviewed. Only 14 houses are inspected on an annual schedule, but fees are being paid for through all rental properties.

‘What that means to us, they are incentivized to fail properties,” he said. “This is a very lawless act. Treats people in our community as second-class citizens.” Creston’s proposal included an inspection per property every three years.

Spencer asked for the proposal to be tabled and schedule town hall meetings between city officials and property owners for further discussions.

Spencer also asked about the lack of activity on the plan by council since the approval of the inspection company. No council member responded.

Property owner Brad Waltz said Bartlett Properties have made significant improvements to multiple properties.

“Add it up, $100 a unit, what would it be,” he said about Bartlett paying the inspection fees. “I hope we don’t get to discouraging these people. If bad landlords have to sell, maybe a good landlord would pick it up. But to penalize the good landlords, it’s out and out wrong.”

Creston attorney Loretta Harvey said there are legal issues regarding the proposed ordinance. She said she is also a landlord and represents a number of the property owners who were in attendance.

She referred to Iowa Code about landlords and tenants.

“In that section you will find a number of the answers you are looking for. There are landlord remedies. There are tenant remedies. Those need to be utilized.,” she said.

Harvey said tenants do have a proper way to notify property owners about the condition of their property.

“I don’t believe the council and the city should be responsible for what the tenant needs to take care of. They need to report to their landlord,” she said.

She said the proposed ordinance “has a lot of holes in it” and urged council to take a better look.

Harvey said the rental inspection company could be receiving a “blank check book” since the inspection schedule is vague with limitations on inspections.

She also questions the constitutionality.

“You are going into people’s homes. You are looking at the most intimate area of their home, the most intimate part of their life. Do we want to have some outsider coming in and doing that as frequently they want to do it,” she said. Harvey said the policy may infringe on the Fourth Amendment about search and seizure.

Harvey said it is not clear who is responsible for knowing of the inspections especially when the property is sold. “Who is going to police that,” she said. “Are the realtors supposed to make that known? Is the Union County Recorder gong to have take care of that? Has anybody thought just of the administration of all this? Who is going to keep track of just the general inspections?”

According to Harvey, the board of adjustments will hear appeals made by property owners.

“All these landlords that come in here tonight. If any of them have an outside party inspecting their property and they are getting dinged for what every situation it is, they are probably going to appeal it. Does the board of adjustment have time to listen to all the appeals?”

Harvey said she would like to further speak to council and city attorney about the proposal. She already has spoken with city attorney Mike Elcock.

Jason Cook does not want council Member Kiki Scarberry who is a licensed realtor to vote on the policy.

“It going to push houses to market. I don’t think that is fair at all,” he said.

Scarberry responded later in the meeting.

“I’m all for making it better, they bring up some very good points,” she said. “I would challenge all of us to think about this. It’s great to see the person that inspects your property at the grocery store. But it also influences whether if they are going to come down on you hard or whether or not the will hold you accountable because they have to see you at the baseball game. I want you to understand that part of my reason for supporting is this because it’s an outside influence. I know the money goes out too. If we can find a way to do it and keep it here, I’m for that too. The problem is this company comes with a solution that something that we didn’t have a solution for. We created an ordinance we don’t have the manpower to do.”

Scarberry said she also owns rental property.

“We all want this town to be better. We want to improve the rental properties. We want to improve the image of Creston,” Harvey said. “I’m absolutely opposed to having some outside party inspect my properties or my clients’ properties. I urge you to reconsider that.”

Kathy Ralston said she has noticed in her 10 years in Creston the lack of dignified housing. She has become a landlord and has experienced another unit the charging the same amount as hers but is in worse condition, “where people shouldn’t be living.”

Ralston said she is in favor of the ordinance so the town can improve its housing for all people.

“I am very willing to pay per unit once ever three years to make sure I’m maintaining a standard of living.”

Sarah Scull spoke in favor of the ordinance based on her own experiences.

She said she has lived in Creston 10 years.

“I was disappointed on the rental situation. They were pretty subpar. I’ve moved six times in five years, and found the same situation.”

She teaches at Southwestern Community College and explained what happened to a student who has a rental and furnace quit during cold temperatures.

“They didn’t have heat that week,” she said.

Scull contacted student after not seeing her in class.

“She said the plug-in heaters went out so electric went out of the house,”

Scull said she contacted Creston Mayor Gabe Carroll if city could help. Not confident the furnace would be repaired in a timely manner, Scull said she paid for one night of a hotel for the person.

“I asked for others which helped pay for four nights,” she said. “I told her what to say to the landlord and report to city if it wasn’t fixed. The landlord did remedy that problem. The fact it went that long was unacceptable. I’ve heard stories about landlord. That was concerning. No use in an ordinance if there is no enforcement.”