Columbus passes 3 new LL ordinances: sec 8, deposits, reciepts

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Columbus passes 3 new LL ordinances: sec 8, deposits, reciepts

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Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes

The "Housing for All" legislative package containing 3 ordinances affecting rental housing providers was passed by city council: 

  • Ordinance 0494-2021:  Landlords cannot discriminate on housing vouchers, the rent voucher or subsidy must be included in the calculation of income. 
  • Ordinance 0495-2021:  Operators with 5 or more units are required to allow security deposits to be made in monthly installments over up to 6 months
  • Ordinance 0496-2021: Landlords are required to give written receipts for all security deposits and rent payments

Thus, no more "no section 8" or "not section 8 approved" listings in your rental ad. 

A landlord found guilty of refusing to rent based on source of income would be guilty of a first-degree misdemeanor, punishable by up to 180 days in jail and a $1,000 fine. 

As for the security deposits, the legislative text explains that operators are required to provide written notice of security deposit payment alternatives, including a 3 month installment or a 6 month installment. (I am not sure why there are two alternatives) A landlord found guilty of violating this is a misdemeanor of the 4th degree.

The written receipt requirement covers security deposits and rental payments, and the reciept must be provided within 4 business days if otherwise not automatically generated. If payments are through an online portal or service, the tenant has to be able to obtain a written reciept through that service.  (I assume a screenshot or printout of a transaction history page would count?) . A violation of this ordinance would also be a 4th degree misdemeanor. 

The Columbus Urban League will investigate complaints regarding violations of the new policies.

I don't have more information on how exactly these are to be interpreted, and if services such as Rhino count for the installment ordinance. 

Articles:

https://www.dispatch.com/story...

https://abc6onyourside.com/new...

Ordinances: (click "Text" tab and then "click here for full text" at the bottom.

0494: https://columbus.legistar.com/...

0495: https://columbus.legistar.com/...

0496: https://columbus.legistar.com/...

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    Allen Tracy
    Chatsworth, CA · Member since 2016 · 190 posts · 224 votes
    5y

    Thanks for the update, I remember reading about these a few months back, didn't know they had passed.

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    • Allen Tracy
      Chatsworth, CA · Member since 2016 · 190 posts · 224 votes
      5y

      Thanks for the update, I remember reading about these a few months back, didn't know they had passed.

      1Reply
    • Marc RiceBusiness Member
      Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
      5y

      @Nicky Reader

      I remember they had mentioned only being able to collect 50% of months rent as security deposit, I guess that changed. Interesting they’re changing that for 5+ unit owners, I assume that means 5 in the same building for commercial.

      I could see this increasing the quantity of small claims cases and hurting problem tenants even more if the proper security deposits are not collected on time.

      Regarding “source of income” does that affect screening on employment I.e. restaurant worker OR is that completely overruled now?

      Overall not a drastic change here and it should increase protections for tenants.

      [email protected]614-363-2787
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    • Jack SmithPro Member
      Rental Property Investor · Massillon, OH · Member since 2017 · 216 posts · 168 votes
      5y

      So if a unit doesn't pass a S8 inspection they can't move in.  If you know it won't pass, then 'not Section 8 approved' still fits....?

      1Reply
    • Account Closed
      OP
      Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
      5y
      Originally posted by @Jack Smith:

      So if a unit doesn't pass a S8 inspection they can't move in.  If you know it won't pass, then 'not Section 8 approved' still fits....?

      With all the anti-landlord rhetoric and hate right now, I wouldn't risk anything during advertising or screening that gets me extra negative attention.  I am already taking screening to the next level with the moratoriums, so no doubt any poor candidate will get rejected for something I'm already screening on.   If they are a really solid tenant with a voucher, I guess I'll just toe the line and hope for the best.

      The one monkey in the wrench for me is the extra contract terms CMHA/HUD likely requires. I do not want yearlong leases or other complicated terms right now, which no doubt the voucher people will demand. I don't see how they can force me to sign a contract, even with threats of jailtime. I guess if I get dragged that far and the whole thing blows up over my refusal to sign a contract, at least its not refusal due to income source?

      Hopefully an attorney will weigh in... 

      1Reply
    • Jack SmithPro Member
      Rental Property Investor · Massillon, OH · Member since 2017 · 216 posts · 168 votes
      5y

      All true, Nicky, good points. 
      My experience in Akron, Canton, and Cleveland was they don’t require anything beyond a copy of the lease.  They don’t interfere with the lease (as long as it’s legal), as it’s an agreement between the two parties only.  
      But it does have to pass HQS, and to me, that’s the catch.  It’s very easy to ‘fail’ an inspection.  

      1Reply
    • Casey Chapman
      Investor · San Diego, CA · Member since 2020 · 14 posts · 4 votes
      5y

      @Nicky Reader Thank you for the update. Let us know if you run into any noteworthy scenarios navigating through the new ordinances.

      0Reply
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