Memorandum

City of Lawrence

Planning & Development Services

TO:	David L. Corliss, City Manager
FROM:	Margene K. Swarts, Assistant Director, Development Services
CC:	Scott McCullough, Director, Planning and Development Services
Date:	February 9, 2009
RE:	DS Staff Review of Manhattan, Kansas Housing Code Article VIII, Section 8-178

Development Services staff have reviewed the above-mentioned section of the Manhattan Housing Code to determine the appropriateness for Lawrence.  Basically, the ordinance allows the escrow of tenant rental payments from unfit/substandard housing under particular circumstances.  The purpose of the ordinance appears to be a mechanism that suspends the duty of the tenant to pay rent and the right of the landlord to collect rent, without affecting the landlord/tenant relationship, when the unit has been inspected by City officials and determined to be unfit for habitation/substandard. 

The primary requirement is that the tenant must notify the landlord in writing of the alleged unfit/substandard condition of the premises at least 14 days prior to the tenant making any request that the premises by inspected for unfit/substandard conditions.  If the structure is deemed unfit/substandard and the tenant wishes to continue paying rent to guarantee occupancy, it can be paid to an escrow account that is managed by the City Clerk.  Certain provisions then dictate when, or if, the escrowed funds can be paid to the landlord.   

Development Services staff visited with Manhattan city staff specifically regarding this ordinance.  According to them, the ordinance was adopted in the mid-1980’s and the escrow provision has been used only once as far back as they could remember.  They also acknowledged that the 14 day required notification period by the tenant to the landlord appeared to be a particularly negative aspect of the ordinance and was the likely reason it is not utilized. 

At this time, staff does not believe this ordinance would enhance enforcement of the housing code in Lawrence.  The requirement for a 14 day written notice from the tenant to the landlord prior to requesting an inspection by the City is onerous on the tenant.  And, depending on the nature of the violations, the unit may be vacated after a determination of unfit/substandard.  If so, there is no reason a tenant would wish to continue paying rent on that unit as well as a new unit.  This ordinance does not appear to have any real benefit for a landlord either. 

At this time, staff would not recommend incorporating this ordinance into current housing code enforcement standards.  If you have further questions, please let me know.