1     
GOOD LANDLORD AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brian S. King

5     
Senate Sponsor: Curtis S. Bramble

6     Cosponsors:
7     Patrice M. Arent
8     Joel K. Briscoe
9     Rebecca Chavez-Houck
10     Susan Duckworth
11     Rebecca P. Edwards
Steve Eliason
Francis D. Gibson
Lynn N. Hemingway
Sandra Hollins
John Knotwell
Karen Kwan
Michael E. Noel
Marie H. Poulson
Marc K. Roberts
Angela Romero
Elizabeth Weight
Mark A. Wheatley
12     

13     LONG TITLE
14     General Description:
15          This bill modifies provisions related to disproportionate rental fees.
16     Highlighted Provisions:
17          This bill:
18          ▸     prohibits a municipality from requiring a residential landlord to deny tenancy to an
19     individual based on the individual's criminal history.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          10-1-203.5, as last amended by Laws of Utah 2016, Chapter 86
27     


28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 10-1-203.5 is amended to read:
30          10-1-203.5. Disproportionate rental fee -- Good landlord training program -- Fee
31     reduction.
32          (1) As used in this section:
33          (a) "Business" means the rental of one or more residential units within a municipality.
34          (b) "Disproportionate rental fee" means a fee adopted by a municipality to recover its
35     disproportionate costs of providing municipal services to residential rental units compared to
36     similarly-situated owner-occupied housing.
37          (c) "Disproportionate rental fee reduction" means a reduction of a disproportionate
38     rental fee as a condition of complying with the requirements of a good landlord training
39     program.
40          (d) "Exempt business" means the rental of a residential unit within a single structure
41     that contains:
42          (i) no more than four residential units; and
43          (ii) one unit occupied by the owner.
44          (e) "Exempt landlord" means a residential landlord who demonstrates to a
45     municipality:
46          (i) completion of any live good landlord training program offered by any other Utah
47     city that offers a good landlord program;
48          (ii) that the residential landlord has a current professional designation of "property
49     manager"; or
50          (iii) compliance with a requirement described in Subsection (6).
51          (f) "Good landlord training program" means a program offered by a municipality to
52     encourage business practices that are designed to reduce the disproportionate cost of municipal
53     services to residential rental units by offering a disproportionate rental fee reduction for any
54     residential landlord who:
55          (i) (A) completes a landlord training program provided by the municipality; or

56          (B) is an exempt landlord;
57          (ii) implements measures to reduce crime in rental housing as specified in a municipal
58     ordinance or policy; and
59          (iii) operates and manages rental housing in accordance with an applicable municipal
60     ordinance.
61          (g) "Municipal services" means:
62          (i) public utilities;
63          (ii) police;
64          (iii) fire;
65          (iv) code enforcement;
66          (v) storm water runoff;
67          (vi) traffic control;
68          (vii) parking;
69          (viii) transportation;
70          (ix) beautification; or
71          (x) snow removal.
72          (h) "Municipal services study" means a study of the cost of all municipal services to
73     rental housing that:
74          (i) are reasonably attributable to the rental housing; and
75          (ii) exceed the municipality's cost to serve similarly-situated, owner-occupied housing.
76          (i) "Residential landlord" means:
77          (i) the owner of record of residential real property that is leased or rented to another; or
78          (ii) a third-party provider that has an agreement with the owner of record to manage the
79     owner's real property.
80          (2) The legislative body of a municipality may charge and collect a disproportionate
81     rental fee on a business that causes disproportionate costs to municipal services if the
82     municipality:
83          (a) has performed a municipal services study; and

84          (b) adopts a disproportionate rental fee that does not exceed the amount that is justified
85     by the municipal services study on a per residential rental unit basis.
86          (3) A municipality may not:
87          (a) impose a disproportionate rental fee on an exempt business;
88          (b) require a residential landlord to deny tenancy to an individual [released from
89     probation or parole whose conviction date occurred more than four years before the date of
90     tenancy] based on the individual's criminal history unless a halfway house, as that term is
91     defined in Section 51-9-412, is located within the municipality;
92          (c) without cause and notice, require a residential landlord to submit to a random
93     building inspection;
94          (d) unless agreed to by a residential landlord and in compliance with state and federal
95     law, collect from a residential landlord or retain:
96          (i) a tenant's consumer report, as defined in 15 U.S.C. Sec. 1681a, in violation of 15
97     U.S.C. Sec. 1681b as amended;
98          (ii) a tenant's criminal history record information in violation of Section 53-10-108; or
99          (iii) a copy of an agreement between the residential landlord and a tenant regarding the
100     tenant's term of occupancy, rent, or any other condition of occupancy;
101          (e) require that any documents required from the landlord be notarized; or
102          (f) prohibit a residential landlord from passing on to the tenant the license or
103     disproportionate fee.
104          (4) Nothing in this section shall limit:
105          (a) a municipality's right to audit and inspect an exempt residential landlord's records to
106     ensure compliance with a disproportionate rental fee reduction program; or
107          (b) the right of a municipality with a short-term or vacation rental ordinance to review
108     an owner's rental agreement to verify compliance with the municipality's ordinance.
109          (5) Notwithstanding Section 10-11-2, a residential landlord may provide the name and
110     address of a person to whom all correspondence regarding the property shall be sent. If the
111     landlord provides the name and address in writing, the municipality shall provide all further

112     correspondence regarding the property to the designated person. The municipality may also
113     provide copies of notices to the residential landlord.
114          (6) In addition to a requirement or qualification described in Subsection (1)(e), a
115     municipality may recognize a good landlord training program described in its ordinance.
116          (7) (a) If a municipality adopts a good landlord program, the municipality shall provide
117     an appeal procedure affording due process of law to a residential landlord who is denied a
118     disproportionate rental fee reduction.
119          (b) A municipality may not adopt a new disproportionate rental fee unless the
120     municipality provides a disproportionate rental fee reduction.
121          (8) A property manager who represents an owner of property that qualifies for a
122     municipal disproportionate rental fee may not be restricted from simultaneously representing
123     another owner of property that does not qualify for a municipal disproportionate rental fee.