1 1 Councilmember Anita Bonds Chairman Phil Mendelson 2 3 4 5 6 7 8 9 A BILL 10 11 12 IN COUNCIL OF THE DISTRICT OF COLUMBIA 13 14 15 16 17 To require the Department of Buildings to establish a tiered proactive inspection program for 18 multifamily rental housing properties, to establish minimum program requirements, and 19 to establish reporting requirements for the program. 20 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 21 act may be cited as the “Proactive Inspection Program Act of 2023”. 22 TITLE 1. ESTABLISHMENT OF THE PROACTIVE INSPECTION PROGRAM 23 Section 2. Definitions. 24 For the purposes of this act, the term: 25 (1) “Department” means the Department of Buildings. 26 (2) “Director” means the Director of the Department of Buildings. 27 (3) “Extremely low household income” means a household income equal to 30% or less 28 of the area median income. 29 (4) “Housing provider” means a landlord, an owner, lessor, sublessor, assignee, or their 30 agent, or any other person receiving or entitled to receive rents or benefits for the use or 31 occupancy of any rental unit within a housing accommodation within the District. 32 2 (5) “Mayor” means the Office of the Mayor of the District of Columbia. 33 (6) “Multifamily rental housing property” means residential real property consisting of 3 34 or more dwelling units that are rented or offered for rent for residential occupancy, including an 35 apartment, efficiency apartment, room, suite of rooms, a single-family home, or duplex. 36 (7) “Occupant” means a person authorized by the tenant or housing provider to be on the 37 premises of the rental unit. 38 (8) “Tenant” means a lessee, sublessee, or other person entitled to the possession or 39 occupancy of a rental unit. 40 Section 3. Program; purpose. 41 (a) The Director shall establish a program to proactively inspect all multifamily rental 42 housing properties. It is the purpose of the proactive inspection program to: 43 (1) Proactively identify and address housing code violations in multifamily rental 44 housing properties across the District; 45 (2) Ensure significant compliance with the housing code in multifamily rental 46 housing properties; and 47 (3) Preserve and enhance the quality of life for District residents. 48 (b) For purposes of the program, multifamily rental housing properties shall be classified 49 into three tiers: Tier 1, Tier 2, and Tier 3. Program tiers shall be as follows: 50 (1) Properties in tier 1 shall be proactively inspected every 8 years; 51 (2) Properties in tier 2 shall be proactively inspected every 4 years; and 52 (3) Properties in tier 3 shall be proactively inspected every year. 53 (c)(1) A multifamily residential housing property shall be assigned to a tier based on the 54 total number of points assigned to the property, with fewer points resulting in a lower tier 55 3 classification and more points resulting in a higher tier classification. Points shall be based on the 56 following factors: 57 (A) The number of housing code violations found at the property in the 58 past two years; 59 (B) The average length of time (in days) housing code violations remained 60 unabated at the property in the past two years; 61 (C) The number of stop-work orders issued for the property in the past two 62 years; 63 (F) The number of violations for failure to properly store solid waste at or 64 on the property in the past two years; 65 (G) The age of the property; 66 (D) The owner has failed to be current in paying property taxes in the last 67 two years; 68 (H) The property is located within an area where the percentage of 69 vulnerable populations, including people with disabilities, people who are foreign-born, people 70 who use English as a second language, and households with extremely low household income, is 71 greater than the District average; and 72 (I) The property is located in an area where the percentage of children 73 under the age of 6 that have lead blood levels equal to or greater than 5 micrograms per deciliter 74 (>5 μg/dL) is greater than the District average. 75 (2) 76 (d)(1) Multifamily rental housing properties shall be re-evaluated for classification as 77 follows: 78 4 (A) Properties in tier 1 shall be re-evaluated for classification every 8 79 years; 80 (B) Properties in tier 2 shall be re-evaluated for classification every 4 81 years; and 82 (C) Properties in tier 3 shall be re-evaluated for classification every year. 83 (D) Notwithstanding subparagraphs (A) through (C) of this paragraph, the 84 Director may re-evaluate and reclassify a property at any time. 85 (2)(A) The Department shall notify multifamily residential housing providers of 86 their initial classification and any subsequent change in tier classification. 87 (B) The notification shall include basic information about the proactive 88 inspection program, the specific criteria that were used to classify the multifamily residential 89 housing property, the percent and number of units that will be inspected at the property, and 90 contact information for the Department for further questions. 91 Section 4. Inspections. 92 (a) For purposes of a proactive inspection, an inspector shall inspect the exterior, all 93 common interior areas, and individual units in a property. 94 (b) The number of individual units inspected in a multifamily housing property shall be 95 calculated as follows: 96 (1) At least 75% of units in a property with 25 units or less; 97 (2) At least 60% of units in a property with 26 to 49 units; 98 (3) At least 50% of units in a property with 50 to 199 units; and 99 (4) At least 33% of units in a property with 200 or more units. 100 5 (c) Units shall be selected at random; except, that units with one or more housing code 101 violations in the last two years shall also be included for inspection. 102 (d)(1) The Department shall notify the property owner or property manager of a proactive 103 inspection and post notice of a proactive inspection at the property at least 14 days before the 104 scheduled inspection date. 105 (2)(A) The Department shall provide property owners with inspection consent 106 forms at least 14 days before the scheduled inspection date. 107 (B) A property owner or manager shall obtain written consent from 108 tenants of the units that have been selected by the Department for inspection at least 7 days 109 before the scheduled inspection date. Completed consent forms shall be transmitted to the 110 Department at least 5 days before the date of the scheduled inspection. 111 (B) Where a tenant does not give his or her consent to inspect the unit, the 112 Department shall provide the property owner or manager with another unit selected pursuant to 113 subsection (c) of this section. 114 (e) The Department shall publicly post a list of properties to be proactively inspected 115 each month at least 7 business days prior to the beginning of each month. The list shall not 116 include information on specific units within a property that are to be inspected. 117 (f) A property owner or manager must be on the premises during inspections. 118 Section 5. Proactive inspection fees and fines. 119 (a) A proactive inspection fee is established to fund the implementation of this act. 120 (b) As of January 1, 2023, proactive inspection fees shall be established as follows: 121 (1) The fee shall be $35 per unit with a maximum cumulative fee of $6,000 for 122 any inspection cycle. 123 6 (2) The fee for re-inspections shall be $90. Any re-inspection fees shall not count 124 toward the cumulative fee under subparagraph (1) of this subsection. 125 (c) Fees assessed pursuant to this act shall be deposited into the Nuisance Abatement 126 Fund in § 42–3111.01. 127 (d) Fines assessed pursuant to this act or District of Columbia Municipal Regulations 128 (DCMR) as a result of proactive inspections shall be deposited into the General Fund of the 129 District of Columbia. 130 Section 6. Prohibited conduct. 131 (a)(1) Housing providers shall not take any retaliatory actions, as defined in D.C. Official 132 Code § 42-3505.02, against tenants or occupants due to any findings of proactive inspections, or 133 as a result of fees, fines, or other expenses incurred due to the proactive inspection program. 134 (B) A tenant may submit a complaint of retaliatory action to the 135 Department. The Department shall investigate complaints of retaliatory actions submitted by 136 tenants within five days of receipt of the complaint. 137 (A) The Department shall issue a written determination to the tenant or 138 occupant who submitted the complaint and the housing provider no later than 15 days after the 139 receipt of the complaint. The determination shall provide information on the scope of their 140 investigation, the evidence used to inform the investigation, and the findings of the investigation. 141 (B) Where the Department determines, through a preponderance of the 142 evidence, that a housing provider has taken retaliatory action against tenants or occupants as a 143 result of a proactive inspection action, the Department shall issue a fine to the housing provider 144 of not less than $3,000 per violation. 145 7 (C) A housing provider may appeal a determination of the Department 146 within 15 days of receipt. 147 (b)(1) If a property owner or property manager knowingly impedes or interferes with the 148 proactive inspection process, DCRA shall issue a fine to the housing provider of not less than 149 $3,000. 150 (2) In addition to the fine under subparagraph (1), DCRA shall classify the 151 property in question as tier 3. 152 Section 7. Implementation plan. 153 (a) The Director shall prepare and submit to the Council a plan to facilitate the 154 implementation of this act. 155 (b) The plan shall include: 156 (1) A timeline for drafting and promulgating rules to implement this act; 157 (2) A list of memoranda of agreement or memoranda of understanding with other 158 District agencies that will be necessary to implement this act; 159 (3) A communications strategy that articulates the methods by which the 160 Department will share information about the program with landlords, tenants, and other 161 stakeholders; 162 (4) Methodology the Department will use to classify properties into tiers pursuant 163 to Section 3, including the number of points assigned to each factor under Section 3(c)(1) of this 164 act. 165 (c) The plan shall be submitted to the Council 90 days after the effective date of this act. 166 Section 8. Annual reporting. 167 8 (a) On or before January 1, 2024, and annually thereafter, the Director shall submit to the 168 Council, a report detailing inspection and enforcement activities of the prior fiscal year under the 169 proactive inspection program. 170 (b) The report required under paragraph (a) shall include the following data for the prior 171 fiscal year: 172 (1) Inspection data: The number of properties and units inspected by tier; 173 (2) Violation data: The number and type of violations identified and cited by tier; 174 (3) Enforcement data: The dollar value of violations cited by the Department, the 175 dollar value of the fines assessed versus the fines collected, violations for which the fines were 176 issued, and identifying any reduction in the fine amount due to an action by the Department 177 and/or an administrative judge, and any fines not yet collected as of the date of the report by tier; 178 (4) Abatement efficacy data: The average length of time (in days) for violations to 179 be abated, and the number, average length, and justification for extensions granted by the 180 Department by tier; 181 (5) Enforcement escalation: The number of violations referred to the Attorney 182 General for the District of Columbia, the dollar amount assessed, and a description of matters 183 referred by tier; 184 (6) Collections data: The number of violations referred to the Central Collections 185 Unit by tier; 186 (7) Re-evaluation data: For applicable years, the number of properties reclassified 187 pursuant to Section 3(d). 188 Section 9. Rules. 189 9 (a) The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure 190 Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), shall issue 191 rules necessary to implement the provisions of this act. 192 (b) Proposed rules promulgated pursuant to subsection (a) of this section shall be 193 submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal 194 holidays, and days of Council recess. If the Council does not approve or disapprove the proposed 195 rules, in whole or in part, by resolution within this 45-day period, the proposed rules shall be 196 deemed approved. 197 (c) Upon the effective date of rules promulgated pursuant to this act, existing rules related 198 to the Proactive Inspection Program under Title 14 of D.C. Municipal Regulations shall be 199 deemed repealed. 200 Section 10. Fiscal impact statement. 201 The Council adopts the fiscal impact statements in the committee report as the fiscal 202 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 203 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 204 Section 11. Effective date. 205 This act shall take effect following approval by the Mayor (or in the event of veto by the 206 Mayor, action by the Council to override the veto), a 30-day period of congressional review as 207 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 208 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 209 Columbia Register. 210