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HomeMy WebLinkAbout06.09.21 RHAB Full AgendaRental Housing Advisory Board Wednesday, June 9, 2021 3:30 PM Meeting Information: Link: https://tinyurl.com/bz4vmp7w Password: RHjUbj2cT93 (74582522 from phones and video systems) Phone Number: 1-510-338-9438 Access Code: 142 900 3080 To Whom It May Concern: Please note the City of Oshkosh Rental Housing Advisory Board will meet on Wednesday, June 9, 2021 at 3:30pm via WebEx to consider the following agenda: I. Call to Order II. Roll Call III. Citizen Statements IV. Welcome New Members – Lydia Christensen and Lateria Garrett V. Approval of Minutes – April 14, 2021 VI. ADVOCAP Rental Assistance Update - Lu Scheer, ADVOCAP VII. Rental Inspections Update VIII. Social Media Update IX. Virtual or In Person Meetings X. Elections for Chair and Vice-Chair XI. Winnebago County Eviction Data Update XII. Wisconsin Eviction Data Project XIII. Affordable Housing Study Update XIV. Public Information Campaign – Tenant and Landlord Rights XV. American Rescue Plan Act (ARPA) Project Recommendations XVI. Other Business XVII. Adjournment Rental Housing Advisory Board Minutes 1 Rental Housing Advisory Board Meeting Minutes April 14, 2021 Present: Alec Gulan, Lynnsey Erickson, Timothy Ernst, Linda Jevaltas, Tom Hutchison, Donn Lord Excused: Danny Garcia. Katrina DeGroot Staff: Allen Davis; Community Development Director, Darlene Brandt; Grants Coordinator, Anna Maier; Administrative Assistant, Casey Koelbl, Housing Inspector I. Call to Order Mr. Ernst called the meeting to order at 3:30pm. II. Roll Call Roll call was taken and a quorum declared present. III. Approval of Minutes – February 10, 2021 The minutes of the February 10, 2021 meeting were approved with minor revisions. (Erickson/Jevaltas) IV. Citizen Statements Mr. Matt Mikkelsen, 906 Winnebago Avenue, stated that he is a landlord in town and would like to speak regarding the preamble to the Tenant Bill of Rights. He feels that it is very inflammatory towards landlords. He has successful relationships with his tenants. It is not financially beneficial and it is stressful when things do not work out with a tenant. The way that the preamble is written makes it sound like he is the bad guy and he has a big problem with that because he considers himself a decent landlord and so do several of his tenants that he has had for multiple years. Mr. Mikkelsen stated that he wants the preamble removed completely because it is not fair how landlords are portrayed in this situation. He discussed the matter with Mayor Palmeri and Council Member Mugeraurer. It is something that he is going to become more involved with to get the preamble removed. It is not in the landlord’s interest to evict tenants and he knows that is one of the things in the preamble about unnecessary evictions. He would rather work with a tenant to keep them in their house and continue to get paid. He is also involved in judgement collections and finds that working on resolving a problem is much more financially productive and much less stressful. He has spent a lot of time working with tenants proactively and helping guide other landlords to help mediate their situations. Mr. Mikkelsen stated that there have been some comments made about landlords pushing back against the City and causing situations that become harmful for tenants. During the Inspection Program, the City argued to have local control instead of state control. Part of the problem with the Rental Housing Advisory Board Minutes 2 Inspection Program was that there were tenants who did not want to have an Inspector come through their place. There was one specific incident with four roommates and three of them did not want the City to come through. They still came through because they forced the tenants to allow them in and it created a lot of problems along the way, both for the City and the landlord. It ended up becoming a lawsuit where the landlord had to sue the City for communication issues. Mr. Mikkelsen asked what the purpose of the Rental Housing Advisory Board is and what the actual mission statement is. At the December 9th, 2020 meeting, Mr. Ernst said that he had no specific ideas for policy. He finds that concerning and it makes him wonder what the purpose of the board is. Mr. Mikkelsen stated that there is also talk about vulnerable people. He is demanding to see those statistics to find out what those issues are. If there are issues, he would love to be part of the resolution to find ways to solve the issue. There was also mention of threats against tenants for talking with the City. He is demanding specific examples of actual threats. Mr. Mikkelsen stated that he advertises he is looking for tenants who want to have a positive relationship with their landlord. He also puts the Inspection Services phone number on the top right corner of his lease to show good faith. The top left corner has the link for the DATCT website, which is basically the Wisconsin’s Consumer Protection website. He gives this to his tenants to let them know that he is interested in having a positive relationship with them. Mr. Mikkelsen stated that the preamble for the Tenant Bill of Rights is already established. The Tenant Bill of Rights seems to come from state statutes. DACTC has the tenant rights and responsibilities right on their website. Instead of spending time with the City that he is paying for with his taxes, why don’t they just give out the tenant rights and responsibilities from DACTC and promote DACTC’s website for tenants having a problem with their landlord? Mr. Ernst stated that he would respond to Mr. Mikkelsen after the guest speakers because the Tenant Bill of Rights is an agenda item. V. ADVOCAP Rental Assistance Update Ms. Lu Scheer stated that this is her first opportunity to provide a Wisconsin Emergency Rental Assistance (WERA) Program update. Wisconsin received approximately $389,000,000. They are able to pay rent that’s due, utilities that are past due, and current utilities that are due. ADVOCAP is assisting Fond du Lac, Winnebago, Green Lake, and Calumet counties. Emergency Services Inc. (ESI) is assisting the entire state. They have spent $1,017,654, $603,618. Approximately $603,618 or 59.8% of the total $1,017,654 has come into Winnebago County. Ms. Scheer stated that ESI and ADVOCAP combined have paid $929 for current utilities to assist five households and $21,614 for past due utilities to assist 35 households. They can pay up to 15 months of assistance including both rent and utilities and the payments could go as far back as March of 2020. They have paid $5,669 to assist five households with mobile homes. Unfortunately they cannot pay City water bills, but ADVOCAP has other options and resources to assist with those. Late fees are an allowable cost. Most landlords were willing to forgive or reduce late fees, but they cannot put a cap on Rental Housing Advisory Board Minutes 3 late fees. ADVOCAP was trying to keep late fees under $100 per month and most landlords were willing to do that, but they had a few who insisted on some pretty high rates. They paid $10,552 to landlords for the purposes of helping 46 households. The highest payment to a landlord she saw was $5,100. They can pre-pay up to three months for rental assistance. They have prepaid $304,570 in rental assistance for 144 households and $253,136 in past due rental assistance for 121 households. They also paid security deposits for 5,325 households. Ms. Scheer stated that they recently learned of three landlords who received payment for past due and pre-paid rent and then evicted their tenants. She does not know if they are from Winnebago County, but the state is now requesting those funds back. They had two landlords refuse any assistance. They try to encourage landlords, but landlords they the choice. The majority of landlords are working with their tenants. Ms. Scheer stated that this program is likely to go through the end of the year. They also understand that there will be another stimulus package and they’re anticipating that the rental assistance could continue until 2024. The next package is very likely to help homeowners as well. So far they have not received requests for mortgage assistance. As she looks are the area more closely, she realizes that they’re not the highest spending area because employment in Winnebago had a slight increase during the pandemic. Fond du Lac was the lead in the state in regards to the number of employed individuals from March through November of last year. She knows that the pandemic has affected many people and she certainly does not want to minimize that, but they are fortunate to not need as much funding as other areas. Mr. Lord asked if Ms. Scheer has a summary that he could distribute. Ms. Scheer replied that it is on the ADVOCAP website under FAQ. They have the pre-screen and other information there as well. Right now they have fewer than 20 people on their waitlist and with WRAP they had around 400 people on their waitlist. Between ADVOCAP and ESI, people are being served relatively quickly. The whole purpose of this is to prevent homelessness. Mr. Lord asked if the original WRAP program had enough funding. Ms. Scheer replied that they were able to continue to draw down. They ran out of time before they ran out of money. Mr. Lord asked if she thinks the same thing will happen this time. Ms. Scheer replied that she does not know how much is owed in utilities, but she believes utility companies were paid out around $1,000,000 to assist 1,700 households. People have not had to pay utilities for 18 months, but they know that will end and there are a lot of people who are scrambling. ESI also works with people who have applied for energy assistance who may not be eligible for WERA funds. Ms. Scheer stated that she also wanted to mention that they were able to serve 174 people with the dollars that ADVOCAP spent. They spent $612,000 on 174 people, 104 of which were in Winnebago Rental Housing Advisory Board Minutes 4 County. Out of the 174 people, 79 were at 30% or less or county median income, 22% were between 30% and 50% county median income, and 3% were between 50% and 80% county median income. ADVOCAP is helping people who are the most vulnerable and the lowest income in their area by a huge margin. She cannot say if it is the same for ESI, but you must be below 80% to be eligible for energy assistance. Mr. Lord asked if she was expecting much happening tomorrow after the moratorium expires. Ms. Scheer replied that she thinks the utilities are working with ESI and they’re aware that this money is available. She has no way of predicting how many people are behind in utilities. Mr. Hutchison asked how many landlords received funding, Ms. Scheer replied that the reports cannot be filtered that way and the State would need to know why she is requesting that information. Mr. Hutchison asked how many landlords received assistance and then evicted their tenant anyway. Ms. Scheer replied that it was three landlords. Two of the names she didn’t recognize at all, so she’s not even sure where they are located. Mr. Lord asked how they were able to be evicted if their rent was paid and they didn’t go before a judge. Ms. Scheer replied that not all tenants know their rights. They know there are landlords who knock on the door and tell the tenant they want them out now, and they know that the tenants move. Mr. Lord replied that he hopes the wave of evictions predicted by the media does not happen because of programs like this. Ms. Erickson asked for confirmation that the process to apply for this is to complete the pre-screen application on the ADOVCAP website. Ms. Scheer replied affirmatively. The website wasn’t working on Monday, but it is working now. People have to apply for energy assistance no matter what because everything goes through ESI’s system. Either ESI or ADVOCAP can pay. Mr. Ernst asked what RHAB can do to assist ADVOCAP with their mission. Ms. Scheer replied that they can keep people informed. People need to be eligible for one month. They only check the income for one month and they can pre-pay up to three months. They have the flexibility to help for one to three months and they are trying to do that as much as they can. Mr. Ernst thanked Ms. Scheer for the update. They would love to have at the June meeting her if she would be interested in speaking with them then. Rental Housing Advisory Board Minutes 5 Ms. Scheer replied that she will plan to attend and will use the same format if they found it useful. VI. Fair Housing Council Presentation Ms. Erika Sanders stated that she is the Director of Program Services for the Metropolitan Milwaukee Fair Housing Council. She is very glad to able to speak with RHAB today and talk about the Fair Housing Council and what they do. Overall what she’d like them to know is that the Fair Housing Council exists to be a resource to them. The Fair Housing Council Milwaukee has been around since 1977 and they serve the whole state. They have a satellite office in Madison and they had a satellite office in Appleton from 2002 up until the start of the pandemic. It is their intention to have an office in the Fox Valley as soon as possible and they are hoping to look at office space soon. Ms. Sanders stated that the Fair Housing Council is a private, non-profit organization and they conceive of themselves as a civil rights enforcement agency. They enforce all the laws that pertain to someone’s rights in virtually any aspect of the housing market including home mortgage lending, sales, rentals, appraisals, and others. Their mission has two parts. They work to combat illegal housing discrimination across the state and they work to help create and maintain racially and economically integrated housing pattern because communities across Wisconsin remain somewhat racially and economically segregated. A flyer was shared with RHAB about the Fair Housing laws that they enforce. She doesn’t won’t go into the law today, but perhaps they could schedule a time for a future meeting if they are interested in discussing it in more detail. Ms. Sanders stated that she would like to discuss some of their services. They take complaints from people who feel like their rights have been violated in the housing market and they help people pursue a legal remedy if that’s what they choose to do. They’re not attorneys and they do not have them on staff or provide legal representation for clients, but they work to ensure their clients are aware of their rights and what the different paths are if they choose to seek out a legal remedy. They can help people file administrative complaints with agencies like the Wisconsin Equal Rights Division or various city attorney’s offices or administrative agencies. They can also help people file complaints with the federal government and HUD. They work with a panel of cooperating attorneys who have agreed to work with their clients on an affordable basis. They also do a lot of education and outreach to housing consumers and housing providers. They give dozens and dozens of presentations annually to social service agencies, homeless services agencies, community based groups, neighborhood groups, religious congregations, and school groups. They provide training to housing providers as well. They do a lot of technical assistance on the telephone to both housing consumers and housing providers who call them with general questions about fair housing issues. Ms. Sanders stated that their website has three fairly new resources that she encourages the board to review and share with their networks as they feel appropriate. As of the end of 2020, they have a brand new fair housing guide for owners and managers of rental properties. It is a fairly comprehensive overview of fair housing laws and issues faced by people who manage rental housing. Their website also includes a resource guide for responding to hate incidents in housing. Hate incidents have been on the rise across the county. Wisconsin is no exception and the resource guide on that topic provides concrete steps or actions one can take to make sure that hate isn’t welcome in their Rental Housing Advisory Board Minutes 6 community. The last new resource that they have is a free housing search application. People can download it on tablets and smart phones and it allows them to enter data about units they look at. They can log a lot of information like the size, cost, and location. It has a mapping function so people can look at where units are in relation to one another. It allows them to compare multiple places based on factors like size or cost. It also has fair housing information, so if someone experiences housing discrimination in the course of a housing search, it give the user information on where to seek help. Ms. Sanders stated that their website is www.fairhousingwisconsin.com. They also share a lot of their information on social media. They post about significant fair housing cases that have occurred and emerging fair housing news. The best way to contact them is their toll free state wide number, which is 1-877-647-3247. Her direct number is 414-315-377. She would be happy to have more specific conversations about their work with anyone who is interested. Mr. Lord asked if the City is required to put on one fair housing seminar per year in the area. Ms. Sanders replied that historically they have had a CDBG contract with the City. They have conducted a training for rental owners and managers as part of that contract. It did not happen during the pandemic. Instead Oshkosh funding helped them develop the fair housing guide that she referenced instead. She has every expectation that they will hold seminars in person once again when it is safe to do so. Mr. Lord asked if they would charge to give a seminar to a non-profit landlord association. Ms. Sanders replied that typically they would charge for private trainings. Those that they don’t charge for are those funded by CDBG entities. She would need to know more specifics about what he’s suggesting and it’s absolutely something she would be open to discussing with him separately. Mr. Ernst and others thanked Ms. Sanders for her time and the helpful information. VII. 2020 Inspection Services Complaints Mr. Davis and Mr. Koelbl provided 2020 Inspection Services data to RHAB. Ms. Jevaltas asked if a receipt or something in writing needs to be presented to the City if a complaint made by a tenant results in an inspection and then the landlord fixes it and resolves the complaint. Mr. Koelbl replied that typically they have pictures sent to them or they do re-inspections to verify that items are fixed. Mr. Ernst asked how the violations broke down. Mr. Koelbl replied that they do not have a way to break that down and they would need to look at each case individually. Ms. Jevaltas asked if it is mostly safety issues. Rental Housing Advisory Board Minutes 7 Mr. Koelbl replied affirmatively. VIII. Winnebago County Eviction Data Update Ms. Erickson provided updated Winnebago County Eviction data to the board. Mr. Hutchison asked how many of the filed evictions resulted in eviction for the tenant. Ms. Erickson replied that she would need to go through each individual case to see what the final ruling was, but she can pull that information for the next meeting if it would be helpful. Mr. Lord asked what percentage of the evictions were for Oshkosh. Ms. Erickson replied that she would have to say the majority are for the City of Oshkosh, but there are some clusters elsewhere. Mr. Lord asked if the moratorium expires on June 30th. Ms. Erickson replied affirmatively. IX. Median Income Amounts Mr. Davis provided a summary of the current median income amounts. X. Website and Social Media Update Mr. Koelbl stated that he posted information regarding Fair Housing Wisconsin to social media. He thinks it would be a good idea to post information about ADVOCAP to social media and their website. Mr. Ernst stated that they had also discussed posting their meetings once those are available. Ms. Erickson stated that the public survey for the housing study could be posted to Facebook as well. Mr. Ernst stated that we can post the schedule of Farmers Market dates when those are available. Ms. Jevaltas asked if it might be a good idea to post general complaints data to indicate that the City is paying attention and responding. Mr. Ernst replied that it would be useful to have that information be more public. Ms. Erickson replied that adding quick education pieces to go along with the top violations might be helpful. XI. Affordable Housing Study Update Rental Housing Advisory Board Minutes 8 Mr. Davis stated that the City retained RDG for the study and RDG has started contacting interested parties. There are a number of ways to participate and a number of RHAB members will be invited to for interviews in April and May. The interviews will finish by the end of May and they are hoping to have a draft plan for review in June or July. The public will be able to participate with surveys being developed with the City and the consultant. Mr. Lord asked if Mr. Davis had any information on the vacancy rate. Mr. Davis replied that the City does not have a number like that. The only time they get a snapshot is when the census is completed once every ten years. Ms. Jevaltas asked how long the housing study might take. Mr. Davis replied that it will be wrapped up at the end of June or early July. Mr. Hutchison stated that he wanted to note that it is a housing study, not an affordable housing study. They are looking at all areas of housing. The technical committee was asked what types of things the study should be looking at, and if they’re not providing vacancy rates, they probably should be as part of the study. He’s on the committee, so he will bring that up. Mr. Ernst agreed that vacancy rates are a good specific ask within the scope of the study. XII. Approve Tenant Bill of Rights Mr. Ernst stated that he proposal right now is in an odd place procedurally and asked Mr. Davis to provide an update on that. Mr. Davis stated that at the last RHAB meeting they had a motion but no second so it died for a lack of a second. It still has not been voted on, tabled, or advanced. He strongly recommends that they make a decision on the item. It could also be amended and voted on at this meeting. It is up to RHAB how they’d like to proceed. Motion to approve 21-01 Tenant Bill of Rights by Hutchison. Seconded by Erickson. Ms. Jevalatas stated that if Mr. Mikkelsen is curious about what RHAB does, he can read the minutes, or check social media, or attend meetings like he did today. She thinks he learned today that there are vulnerable people in the community and got some statistics in that regard. Mr. Ernst stated that he would like to address some of Mr. Mikkelsen’s statements. Ms. Jevaltas explained the purpose of the board well. He added that the strategic plan is part of the minutes, so he can look at that. Very broadly their goal is to inform and advise Common Council on issues related to rental housing in the City of Oshkosh. Rental Housing Advisory Board Minutes 9 Mr. Ernst stated that Mr. Mikkelsen brought up an example of an issue related to the rental inspection ordinance as a reason why the tenant bill of rights is bad. He doesn’t really understand that argument or how one court case against the inspection ordinance disproves that there is an imbalance of power especially given the statistics that were presented today. Mr. Mikkelsen also read a quote from the previous meeting and there is probably some important context there. This is not so much a policy issue, but a resolution reaffirming that the City is interested in protecting its vulnerable renting populations. He admits that there was no policy option to propose to assist vulnerable tenants at their meeting in December. Mr. Ernst stated that Mr. Mikkelsen asked about vulnerable populations and examples of threats. According to recent national statistics, about 1/5th of tenants are at risk of housing stability issues due to COVID-19, with the majority of those people being low income and minorities. Additionally they know that 60% of the evictions that take place in Winnebago County take place in Oshkosh. Examples of actual threats have been provided at past meetings. One that comes to mind is a letter from a semi- prominent landlord in the campus area explaining that tenants would be fined if they let in inspectors or called them. They’ve also seen landlords who have contacted tenants to tell them their stimulus money must be spent on rent or else there would be consequences for the tenant. He can personally attest to being harassed by certain landlords in town for standing up for tenant rights as well. He can try to answer any specific questions that Mr. Mikkelsen might have. Mr. Ernst stated that he disagrees that the Tenant Bill of Rights is unnecessary. The imbalance in power is clear. Landlords have more allies at the state level than tenants do. There is a pretty clear movement toward law changes which preference the landlord at the state level. That has been empirically true recently. Additionally they see widely inconsistent interpretations of what certain landlords are allowed to do in the City versus what they’re not allowed to do. Other research would indicate that all of these threats are exacerbated by COVID-19. He agrees that the bill itself does nothing to prevent these things. What the bill does is make the rights of tenants more visible which could potentially empower them to act for their own benefit. Mr. Hutchison stated that his main point is that he doesn’t know the bill will accomplish or how it will be used. He is not sure what will happen to it if it is approved by Council. He is wondering how many people are going to be aware of this and how much it will actually help. RHAB has spent a lot of time on this and Council is going to spend time on this when the information is already available. If you google “tenant rights in Wisconsin” some flyers come up. That’s his opinion. Ms. Jevaltas stated that she thinks having a Tenant Bill of Rights is important because it can be put on paper and distributed to people. For the most vulnerable people, when they say poor, they mean poor. They don’t have internet access and they might not have a computer. Those who are impoverished are truly that, so they can’t just google their rights. A lot of people who haven’t worked with vulnerable populations don’t realize what vulnerable means and when they’re talking about rental housing and vulnerable populations it’s important to know exactly what that means. Being able to give someone a flyer with their rights on it or having it available at resource facilities like the Salvation Army is an important thing. Rental Housing Advisory Board Minutes 10 Mr. Lord replied that the State has a very good handout already that covers what’s included in the bill. He thinks it’s important to distribute that. When people sign a lease, he gives them the State’s handout that covers tenant rights. It is available free of charge. Ms. Hutchison replied that if you’re printing out the bill, you can print out the State’s handout which has more information and includes both the tenant and landlord rights. The State also updates their handout as the laws change. One of the problems with some of these boards is they take up staff time that staff could be using to work on important things. They’re taking up their time trying to debate this thing which could be solved by using the State’s handout. He understands that some people don’t have access to it, but they wouldn’t have access to the bill either. Why not just print out something that’s already been published? Mr. Ernst asked if Mr. Hutchison is volunteering to distribute them then. Mr. Hutchison replied that he is not volunteering, but Ms. Jevaltas is. He is suggesting that they distribute the handout the State has published. Mr. Ernst replied that he understands that there is redundancy built into the resolution in part because he thinks it’s important for the City to make a clear statement that renters have rights too. Ms. Jevaltas agreed with Mr. Ernst and added that when a landlord provides the information on tenant rights and responsibilities, the focus is on the responsibilities of the tenant. The tenants need something just for them because they’re important. Ms. Erickson asked Mr. Davis what the plan would be if this were approved and how would it be used compared to the handout Mr. Hutchison is referring to. Mr. Davis replied that it would need to be adopted by Council. Then there’s typically a discussion with Council and staff on how it would be distributed. Oshkosh Media Services would be involved for news releases and there would be some printing. He would be speculating about anything beyond that. Mr. Ernst stated that if they can come to an agreement as a board as to some approach to distribute the state’s handout, he would be willing to withdraw the item. If they can agree to engage in some sort of public information campaign in order to promote this document and promote the rights that already exist, then he will withdraw the motion thereby saving Council and staff’s time, avoiding redundancies, and avoiding hurt feelings over language choices. Ms. Jevaltas asked if Mr. Ernst is talking about the document that the landlords hand out. Mr. Ernst replied affirmatively, adding that the document comes from the State. Much of what is in the bill is a reiteration of those things. Mr. Hutchison replied that he is all for that. He really thinks it is important to have both the landlords and tenants understand what the rights of both parties are. Sharing that information via social media Rental Housing Advisory Board Minutes 11 and distributing the information at the Farmer’s Market is a great idea. It’s a handy booklet because there are a lot of smaller landlords, himself included, that don’t do enough of this to fully understand all the rules, so getting the information out is valuable and he’s in support of that. Mr. Gulan stated that he agrees with Mr. Hutchison 100%. Ms. Jevaltas asked if it is something they can start working on at their next meeting since it is very important. Mr. Ernst replied affirmatively. Mr. Ernst stated that he will respectfully withdraw the item in order to avoid redundancy, unnecessary expenditure of staff and Council time, and to avoid the personal threats and intimidation he would likely see as further sponsoring this bill under the auspice that this board will come together to execute a public information campaign to benefit both landlords and tenants. Item withdrawn by Mr. Ernst. XIII. Other Business Mr. Ernst stated that on the next agenda they will discuss the public information campaign for tenant and landlord rights and that will include the pamphlet from the State. He would like members to come with any specific ideas they have for distribution as well as any ideas for videos or anything else they can do. Mr. Ernst stated that they were invited to sit out at the Farmer’s Market again this year. He is not sure when that kicks off, but in the past they’ve done one per month where they sit out and talk to people and hand out literature. He said that they would probably be interested in continuing that. He will confirm the dates and bring them to RHAB once he has them. Mr. Ernst stated that he sent an e-mail to the board that he is planning to send to Mr. Rohloff because Mr. Rohloff requested Board and Commission input on how to spend ARPA funds. He did some research and put together a list of recommendations which include the establishment of a fund for rental assistance, establishment of a tenant legal assistance fund, and the creation of local mediation services to help keep people in their homes. He also included a list of non-funding recommendations for things that can be done to address housing during the pandemic. This includes prohibiting late fees and fines for things like back rent accrued during the emergency, ensuring that tenant legal services fits into that as well, expunging eviction records accrued during the pandemic exploring opportunities for tax credits, tax breaks, and mortgage forbearance for property owners and smaller housing providers that need it the most. All of the links and recommendations are included in the e- mail. He asked if they would like the recommendations sent to Mr. Rohloff as a group or only on his behalf. Ms. Erickson replied that the first paragraph mentions the current moratorium only applying to housing providers accepting federal funding, but that was specific to the CARES act. At the last Rental Housing Advisory Board Minutes 12 Eviction Prevention Group meeting, they discussed that the Housing Authority is exploring adding an Eviction Prevention Specialist position to help tenants and landlords navigate how to avoid evictions. They brought up the need for that kind of role within the larger community. It would be someone who can float between different housing providers and provide assistance both to property owners and tenants to help walk through the things that they can do before they get to the point of an eviction and what resources are available. She doesn’t know if that’s something that’s allowable in this funding, but she was asked to bring that up. Mr. Ernst replied that the Treasury Department statement broadly applies to maintaining housing stability and he thinks keeping people in their homes is the best way to do that. Mr. Rohloff specifically mentioned that they’re focused on homelessness in Oshkosh. They understand the best way to prevent homelessness is to keep people in their homes now, which also means helping people with rental assistance and avoiding evictions when possible. Mr. Davis stated that they can add funding recommendations for the June agenda. Mr. Hutchison stated that if the letter is going to Mr. Rohloff now, it should be clear that it’s coming from Mr. Ernst and not RHAB as a whole. Mr. Ernst stated that the Mayor wants to know if the date and time of this meeting still works for everyone. He asked if anyone had suggestions for alternative times. Ms. Jevaltas replied that it is good for her, but half the board members aren’t here. Mr. Ernst replied that they are working on that too. Mr. Davis stated that they just received a resignation from Ms. DeGroot and they’re expecting something like that from Mr. Garcia as well. Ms. Jevaltas asked what they do in that situation. Mr. Davis replied that the Mayor appoints new members, or recommends the appointment of new members and then the Council approves. The new positions should be filled by the end of May. XIV. Adjournment There being no further business, the meeting adjourned at 5:28 PM. (Erickson/Jevaltas) 2016 2017 2018 2019 2020 2021 Average (2016-2019) January 15 33 49 61 68 47 40 February 53 40 36 51 70 33 45 March 42 35 34 56 40 33 42 April 29 26 40 56 4 35 38 May 54 42 59 58 35 61 53 June 50 41 75 56 84 61 July 55 41 49 69 65 56 August 49 56 40 86 78 62 September 55 30 62 62 47 51 October 62 40 45 64 42 51 November 42 30 63 82 53 54 December 29 48 49 66 51 49 Total 535 462 601 767 637 209 Renter-occupied housing units 24697 24657 24570 24641.33 Eviction Rate 2.17%1.87%2.45%3.11% 535 462 601 767 637 209 2016 2017 2018 2019 2020 2021 Number of evictions filed each year in Winnebago County 40 45 42 38 53 61 56 62 51 51 54 49 January February March April May June July August September October November December 2016 -2019 The average number of evictions filed monthly in Winnebago County are highest in the summer. Filings Judgements Percentage Filings Judgements Percentage Filings Judgements Percentage January 61 17 28%68 11 16%47 12 26% February 51 21 41%70 11 16%33 6 18% March 56 7 13%40 8 20%33 11 33% April 56 6 11%4 2 50%35 5 14% May 58 13 22%29 0 0%61 0% June 56 10 18%85 13 15%#DIV/0! July 69 8 12%65 22 34%#DIV/0! August 86 12 14%78 10 13%#DIV/0! September 62 17 27%47 15 32%#DIV/0! October 64 12 19%42 9 21%#DIV/0! November 82 13 16%53 7 13%#DIV/0! December 66 7 11%51 3 6%#DIV/0! Total 767 143 19%632 111 18%187 34 18% 2019 2020 2021 WINNEBAGO COUNTY FILINGS VS JUDGEMENTS Landlord-tenant relations in Wisconsin are regulated by Wis. Stat. ch. 704, and Wis. Adm. Code ch. ATCP 134. Wisconsin Administrative Code Chapter ATCP 134 (“ATCP 134”) Scope and Application: ATCP 134.01, The Residential Rental Practices Rule applies to business practices related to the rental of most residential dwelling units in this state. The Residential Rental Practices rule does not cover the following kinds of living arrangements: • When a person lives in a premises operated by a public or private institution and the person lives there to receive medical, educational, counseling, religious, or similar services. • When a person occupies a hotel, motel, boarding house, rooming house, or similar lodging for less than 60 days and the person is traveling away from his/her permanent place of residence. • When a person lives in a premises owned and operated by the government or an agency of government. However, these rules do apply to federally subsidized rental housing if the housing is privately owned or operated (which includes HUD "Section 8" housing). • When a member of a fraternal or social organization lives in a premises operated by that organization. However, if the organization rents rooms to non-members, these rules could apply to those rental agreements. • When a person does commercial agricultural work and lives on the premises where he or she is working. • When a person operates and maintains the premises and the person lives on the premises free of charge as part of the employment arrangement. • When a person lives in a dwelling unit that the person is in the process of buying under a contract of sale. ATCP 134.03 Rental agreements and receipts Copies of rental agreements and rules; (ATCP 134.03(1)) If a rental agreement or any of the landlord's rules or regulations are in writing, the landlord should give the tenant a chance to read them before the tenant decides to rent. This gives the tenant a chance to find out what all the rental terms and conditions are before deciding whether to rent from that landlord. The landlord and tenant must agree on the essential terms of the tenancy, such as the total rent, the amount of the security deposit, and the specific dwelling unit the tenant will occupy. Once the parties sign a written agreement, the tenant must receive a copy of the entire agreement. By approving an individual as a prospective tenant, a landlord does not necessarily enter into a rental agreement with that person until they Landlord Tenant Guide 2 agree on the essential terms of tenancy. (See ATCP 134.02(10), definition of "Rental agreement" and the "Note.") Understand, the rules do not require rental agreements to be in writing. Verbal rental agreements are traditional in many parts of the rental industry. Existing statutes allow verbal rental agreements and leases, Wis. Stat. sec. 704.01(1) and (3). Receipts for tenant payments (ATCP 134.03(2)) The landlord is required to give the tenant a written receipt any time the landlord accepts an earnest money deposit, a security deposit, or rent paid in cash. If the tenant pays by check, the rules do not require the landlord to provide a receipt, unless the tenant asks for a receipt. ATCP 134.04 Disclosure requirements Identification of landlord or authorized agents (ATCP 134.04(1)) In many disputes about building maintenance, tenants indicate that part of the problem is that the tenants are not able to contact the landlord about a pressing problem. To help address these problems, this subsection requires the landlord to disclose, in writing, the name and address of the person or persons authorized to collect rent and the person or persons who manage and maintain the premises. The tenant must be able to contact these people relatively easily. In addition, the landlord must identify an owner of the premises or a person authorized to accept legal papers on behalf of the owner. The rule requires that this address (not a Post Office Box) be located within the State of Wisconsin, and that the landlord must provide notice of any change of the person's address within 10 business days of the change occurring. These disclosure requirements do not apply to owner-occupied structures containing up to four dwelling units, since, in such cases, the landlord is living in the building and the tenant knows whom to contact. Code violations and conditions affecting habitability (ATCP 134.04(2)) Local housing codes generally establish the standards which rental housing must meet. A landlord must maintain their rental properties under the requirements of local housing codes. Local housing codes do not protect all rental housing in Wisconsin. Even in municipalities that have housing codes, individual rental units may not be inspected regularly. Before entering into a rental agreement or accepting any earnest money or security deposit from a prospective tenant, the landlord must disclose to the prospective tenant any building or housing code violations that the landlord has actual knowledge of, affecting the dwelling unit or common areas of the premises, that present a significant threat to the prospective tenant’s health or safety and which the landlord has not corrected. The landlord must also disclose if the dwelling unit lacks hot or cold running water; if the heating facilities serving the dwelling unit are not in safe operating condition, or are not capable of maintaining a temperature of at least 67° F during all seasons of the year the unit may be occupied; that the dwelling unit is not served by electricity, or the electrical wiring, fixtures or other components of the electrical system are not in safe operating condition; any structural or other conditions in the dwelling unit or premises which constitute a substantial hazard to the health or safety of the tenant; the dwelling unit is not served by plumbing facilities in good operating condition; or if the dwelling unit is not served by sewage disposal facilities in good operating condition. Utility charges (ATCP 134.04(3)) Landlords often require tenants to pay the utility charges separate from the rent. Before deciding to rent a specific unit, it is important for a tenant to know whether or not the utility charges are included in the rent. A tenant needs this information so they can accurately determine the total cost of renting the unit. 3 ATCP 134.04(3), provides that the landlord must tell a prospective tenant if utility charges are not included in the rent. The tenant must receive this information before signing a rental agreement or paying any money for an earnest money deposit or security deposit. If utility charges are not included in the rent and individual dwelling units and common areas of the building are not separately metered, the landlord must tell the tenant how the costs for utility services will be allocated among the individual dwelling units. ATCP 134.05 Earnest money deposits Earnest money deposit is the money a prospective tenant gives a landlord in return for the option of entering into a rental agreement in the future or so the landlord will consider the person's application. The purpose of these deposits is to protect the landlord from possible costs or losses if the prospective tenant decides not to rent from the landlord. The rules do not prohibit earnest money deposits, nor do they set any limit on the maximum amount of the deposit. Accepting earnest money deposits (ATCP 134.05(1)) A landlord may not accept earnest money deposits until the landlord identifies the specific dwelling unit(s) for which the prospective tenant is being considered. (Note: Credit check fees are not "earnest money deposits".) Returning earnest money deposits (ATCP 134.05(2)) (a) When no rental agreement is made the landlord must return the full earnest money deposit to the applicant by the end of the first business day, by first-class mail or by delivering it to the applicant, after: The landlord rejects the tenant's application or refuses to enter into a rental agreement with the applicant. The applicant withdraws their application before the landlord accepts or rejects it. The landlord does not approve the rental application within three business days after taking the earnest money deposit. The landlord and applicant may agree, in writing, to a longer time for the landlord to consider the application, up to 21 days. (b) If the landlord and tenant enter a rental agreement, then the landlord must either apply the earnest money deposit to the rent, apply it to the security deposit, or return it to the tenant. If the landlord returns less than the full amount of the earnest money deposit and the prospective tenant accepts the partial amount, the prospective tenant still has the right to claim the landlord owes him/her the full amount of the deposit. Withholding an earnest money deposit (ATCP 134.05(3)) If the landlord approves the person to be a tenant, but the person decides not to enter into a rental agreement the landlord may withhold from the earnest money deposit for lost rent and advertising costs actually incurred due to the tenant’s failure to rent the premises. However, if the landlord significantly changed the rental terms previously discussed with the tenant and that is why the tenant withdrew their application, the landlord may not withhold money from the earnest money deposit. If the landlord withholds money from the earnest money deposit for "lost rent," the landlord must make reasonable efforts to re-rent the premises to "mitigate damages” as provided under Wis. Stat. sec. 704.29 ATCP 134.06 Security deposits Most Wisconsin landlords require a security deposit at the beginning of a tenancy to protect themselves from tenant damage or default. Check-In procedures; pre-existing damages (ATCP 134.06(1)) When the landlord requires a security deposit, the rules establish certain basic elements of a "check- in" procedure. First, before accepting any security 4 deposit the landlord must provide written notice that the tenant has at least seven days to inspect and document any preexisting damages or defects. Second, the landlord must tell the tenant they have a right to receive a list or description of any physical damages for which the landlord withheld money from the previous tenant's security deposit prior to accepting a security deposit or converting an earnest money deposit to a security deposit. The landlord may require the prospective tenant to request this list of damages in writing. If the tenant requests a list of previous damages, the landlord must provide the list within 30 days after receiving the request, or within seven days after charging the previous tenant for damages, whichever is later. The rules do not require the landlord to disclose the amount of the charges or the identity of the previous tenant. If the landlord repaired the damages, the landlord may note this on the list. Returning security deposits (ATCP 134.06(2)) The rules provide that the landlord must deliver or mail the security deposit, less any amounts properly withheld, to the last known address of the tenant within 21 days after the end of the rental agreement. If the tenant leaves the dwelling unit before the end of the rental agreement, the landlord still has 21 days after the end of the rental agreement to return the security deposit unless the landlord re-rents the dwelling unit before the end of the rental agreement. In that case, the landlord must return the security deposit within 21 days after the dwelling unit is re-rented. Any payment on starting a tenancy that is more than one month's prepaid rent is defined to be a security deposit. Nothing in the rules prevents a landlord from collecting more than one month's rent as security. However, when the tenant surrenders the premises, the landlord must treat it as a security deposit and must account for it as such. Limitations on security deposit withholding (ATCP 134.06(3)) (a) Generally, the landlord may withhold money from the security deposit only for the following reasons: • Tenant damage, waste, or neglect of the premises; • Nonpayment of rent; • Nonpayment of actual amounts the tenant owes the landlord for utility services provided by the landlord; • Nonpayment of government utility charges for which the tenant is responsible but become the liability of the landlord if the tenant does not pay, and; • Any other payment for a reason provided in a nonstandard rental provision document described in par. (b). (b) The rule allows landlords and tenants to mutually agree, in a "Nonstandard Rental Provision," to permit the landlord to withhold the security deposit for other reasons than those listed above with some exceptions. (c) Specifically, the landlord may not negotiate a "Nonstandard Rental Provision" with the tenant to withhold the security deposit for any costs related to "normal wear and tear." Both the Wis. Stat. sec. 704.28(3) and residential rental practices rule ATCP 134.06(3)(C) prohibit routine across-the-board deductions from the security deposit for cleaning, painting, or carpet cleaning, that result from only "normal wear and tear." However, a rental agreement may include a contractual provision requiring the tenant to pay for routine carpet cleaning. Even if the rental agreement includes the permitted provision, the cost for the routine carpet cleaning may not be collected by the landlord in advance because all prepayments in excess of one month’s rent must be treated as “security deposit.” Even if the rental agreement includes the permitted provision, a landlord may not deduct the cost of routine carpet cleaning from the security deposit, which cannot be withheld for normal wear and tear. 5 Security deposit withholding; statement of claims (ATCP 134.06(4)) If the landlord deducts any money from the security deposit, the landlord must give the tenant an itemized written statement of accounting. This statement must have two entries for each individual deduction: 1. a description of the item and physical damages or other reason for the claim, and 2. the amount withheld as reasonable compensation for the claim. This allows for discussion about whether or not the claim is valid and whether or not the charge for the item is valid. Failure to describe the damage, waste, or neglect that led to each charge makes it appear the charges are being withheld for normal wear and tear. The rules prohibit a landlord from intentionally falsifying any security deposit claim. Tenant failure to leave forwarding address (ATCP 134.06(5)) The rules require the landlord to mail the security deposit and/or an accounting for the security deposit to the tenant's last known address. This rule applies even if the last known address is the dwelling unit the tenant rented under the rental agreement. A tenant should notify the postal service and the landlord, or the landlord's agent, of their change of address as soon as possible to insure they receive their security deposit in a timely manner. However, if a tenant fails to leave a forwarding address, this does not affect the tenant's rights to demand that the landlord return some or all of the security deposit. ATCP 134.07 Promises to repair Some people agree to rent a dwelling unit based upon the landlord's promises to make certain repairs or improvements to the premises. Such promises may induce a person to rent a dwelling unit and should be in writing. Specific date of completion required (ATCP 134.07(1)) For every "promise to repair," the landlord must specify the date or time period when the landlord will complete the repairs, cleaning, or improvements. This requirement applies to promises to clean, repair or improve any furnishings, facilities, or parts of the premises. Initial promises must be in writing (ATCP 134.07(2)) If the landlord makes any promises to repair, clean or improve the premises before the parties sign the initial rental agreement, the landlord must put the promises to repair in writing. The landlord must give the tenant a copy of these promises. Repairs must be completed on time (ATCP 134.07(3)) The landlord must complete the promised repairs or improvements within the time period stated in writing. The only excuses the rules "accept" for the landlord not completing the repairs on time are if: • there is a labor stoppage, • supplies are not available, • there are unavoidable casualties, or • there are other causes clearly beyond the landlord's control. If something happens to delay the completion of the repairs, the landlord must tell the tenant what has happened that is beyond the landlord's control and give the tenant a new date when the repairs will be completed. ATCP 134.08 Prohibited rental agreement provisions Under the rules, rental agreements that contain any of the following provisions are void in their entirety: Allows a landlord to do any of the following because a tenant has contacted an entity for law enforcement services, health services, or safety services: Increase rent, decrease services, bring an 6 action for possession of the premises, refuse to renew a rental agreement, or threaten to take any action to do so. (ATCP 134.08(1)) Authorizes the landlord to evict or exclude the tenant from the premises, other than by judicial eviction procedures as provided under ch. 799, Stats.(ATCP 134.08(2)) Provides for the acceleration of rent payments or waives the landlord’s obligation to mitigate damages in the event of tenant default. If the tenant breaches or defaults on their rental agreement, the landlord may not require the tenant to immediately pay for all future rent payments that the tenant is otherwise obligated to pay. Also, under the rule, the landlord is obligated to attempt to “mitigate the damages.” In most cases, this means that the landlord must try to reduce the amount of rent the tenant is still obligated to pay by trying to re-rent the apartment. A rental agreement may not in any way try to waive the landlord's obligation to mitigate damages and re-rent the premises as required under, Wis. Stat. sec.704.29. (ATCP 134.08(3)) Requires the tenant to agree to pay any attorney's fees or costs the landlord may incur in any legal action or dispute arising out of the rental agreement. However, this does not prohibit the landlord or tenant from recovering attorney's fees and costs under a court order under Wis. Stats. ch. 799 or 814. (ATCP 134.08(4)) Authorizes the landlord to "confess judgment” against the tenant. A tenant is legally disadvantaged by a rental agreement when the rental agreement contains a clause that says the landlord may confess judgement against the tenant whenever certain disputes arise. Says the landlord is not liable for or responsible for any property damage or personal injury caused by the landlord's negligent acts or omissions. (ATCP 134.08(6)) Says the tenant is liable for personal injuries arising from causes clearly outside the tenant's control, or for property damage caused by natural disasters or persons other than the tenant, the tenant's guests, or persons the tenant has invited to the premises. (ATCP 134.08(7)) Waives any statutory or other legal obligation that requires the landlord to deliver the premises in a fit or habitable condition, or maintain the premises during tenancy. While tenants may be held responsible for some maintenance duties, tenants cannot legally give up their rights, such as the right to safe and habitable housing. (ATCP 134.08(8)) Allows the landlord to terminate the tenancy of a tenant based solely on the commission of a crime in or on the rental property if the tenant, or someone who lawfully resides with the tenant, is a victim of that crime. (ATCP 134.08(9)) Allows the landlord to terminate the tenancy of a tenant for a crime committed in relation to the rental property and the rental agreement does not include, the notice required by Wis. Stat. sec. 704.14. (ATCP 134.08(10)) It is important to note that a rental provision requiring the tenant to pay for professional carpet cleaning or other routine cleaning, in the absence of negligence or improper use by the tenant, does not render a rental agreement void. Because routine carpet cleaning is not an obligation statutorily imposed on either the landlord or the tenant, assigning this responsibility to a tenant through a contractual provision does not render a rental agreement void. ATCP 134.09 Prohibited practices Advertising or rental of condemned premises (ATCP 134.09(1)) Landlords may not advertise or rent a premise that has been condemned for human habitation. If the premise is condemned or the landlord has received a notice of intent to do so, the landlord may not try to rent the premises. After the landlord completes the necessary repairs and the premise complies with local building and safety ordinances, the landlord may advertise the premises for rent. 7 Unauthorized Entry (ATCP 134.09(2)) Landlord-tenant law provides that a landlord may enter a rented dwelling unit only under certain specified circumstances, unless the landlord and tenant have agreed to a Non-Standard Rental Provision that specifically authorizes the entry under additional circumstances. Although the landlord has no unfettered right to enter the dwelling unit without the tenant's permission, state law does authorize the landlord to enter the premises without advance approval under limited circumstances. Entry Permitted Advance Notice Required: If the entry is otherwise authorized, the landlord may enter the premises (1) after giving the tenant at least 12 hours advance notice and (2) during reasonable hours, to do any of the following: • Inspect the premises; • Make repairs; • Show the premises to prospective tenants or purchasers; or • For reasons authorized by a Non-Standard Rental Provision. Entry Permitted Advance Notice Not Required: A landlord may enter the premises without advance notice if: • The tenant requests or consents, in advance, to the time the landlord plans to enter the dwelling unit; • a health or safety emergency exists; • the tenant is absent and the landlord reasonably believes that entry is necessary to preserve or protect the premises; If a landlord enters a dwelling unit while it is rented, the landlord must first announce his or her presence to any persons who may be present in the dwelling unit. That is, the landlord must knock on the door or ring the doorbell. If anyone is present when the landlord enters, the landlord must identify himself/herself before entering. Automatic lease renewal without notice (ATCP 134.09(3)) State statutes currently provide that an "automatic renewal" clause in a lease is not enforceable against a tenant unless the landlord gives a written reminder of the clause to the tenant 15 to 30 days before the tenant’s last chance to notify the landlord whether the tenant intends to stay or leave. Landlords should review the language in Wis. Stat. sec. 704.15 for the notice requirements. The statute makes the automatic renewal clause unenforceable, unless the landlord gave the tenant the required "reminder." Confiscating personal property (ATCP 134.09(4)) The rules prohibit landlords from taking a tenant's personal property or preventing a tenant from taking possession of their personal property, unless authorized by Wis. Stat. §§. 704.05(5), 704.11, or 779.43. Retaliatory eviction (ATCP 134.09(5)) A landlord may not increase rent, decrease services (such as water, electricity or heat), refuse to renew a lease, bring an action to evict or threaten to do any of these things, if it is caused by the landlord’s desire to retaliate against the tenant because the tenant has: • Reported a violation of ATCP 134 or reported a building or housing code violation to government authorities; • complained to the landlord about a violation of ATCP 134, Wis. Stat. ch. 704 which describes the duties of the landlord; • complained to the landlord about violations of the local housing code; or • asserted or attempted to assert his/her legal rights as a tenant, including joining or attempting to organize a tenants union or organization. Before filing any formal legal action, a tenant should first consider attempting to resolve problems informally with the landlord. 8 Failure to deliver possession (ATCP 134.09(6)) A landlord must give the tenant access to the dwelling unit at the time agreed upon in the rental agreement. The only time it is permissible for the landlord not to "deliver possession" of the dwelling unit on the agreed date is when something happens which is beyond the landlord's control. Self-help eviction (ATCP 134.09(7)) A landlord may not exclude, forcibly evict, or constructively evict a tenant from a dwelling unit unless the landlord follows the eviction procedures established by law (Wis. Stat. ch. 799). "Constructive eviction" could include the landlord taking actions like the following: disconnecting utility services, changing the locks, removing the doors from the dwelling unit, or harassing the tenants in other ways. Late rent fees and penalties (ATCP 134.09(8)) A landlord may not charge a tenant a "late rent fee" or "late rent penalty," unless the rental agreement specifically provides for such a penalty. If the tenant was late paying rent the previous month and gives the landlord a rent payment for the current month, the landlord must first apply that payment to any rent that is currently due before applying any part of that payment to a late fee. Landlords may not charge tenants a fee or penalty for not paying a late rent fee or late fee penalty. Misrepresentations (ATCP 134.09(9)) The rule prohibits a landlord from making misrepresentations about the rental property or the rental agreement in order to get a prospective tenant to agree to rent from the landlord. Under this rule, no landlord may: • Misrepresent the location, characteristics or equivalency of dwelling units owned or offered by the landlord. For example, the landlord may not show a "model" apartment and then rent a unit which is unlike the “model” apartment shown. • Misrepresent or fail to disclose the total amount of rent and other non-rent charges the tenant must pay. • Fail to tell a prospective tenant about any non-rent charges that will increase the total amount the tenant must pay during their tenancy. • Engage in "bait and switch" practices. For example, the landlord may not tell a prospective tenant that the landlord is considering the person for an apartment in an 8-plex on 25th Street when the landlord really plans to rent the person a smaller apartment in a very large apartment complex on 2nd Street. ATCP 134.10 Effect of rules on local ordinances As to local government ordinances, the Residential Rental Practices rules in ATCP 134 do not prohibit or nullify any local government ordinance unless compliance with that ordinance and ATCP 134 is impossible. If there is a direct conflict between the Residential Rental Practices rules in ATCP 134 and a local ordinance such that, by complying with the ordinance a person would violate the rules in ATCP 134, then the ATCP 134 rules control whenever it is possible to comply with both a landlord and tenant must comply with both the local ordinances and the Residential Rental Practices rules. The Residential Rental Practices rules may not change any of the rights or duties assigned to landlord and tenant in Wis. Stat. ch. 704. Nonstandard rental provisions If the landlord wants to include any additional provisions to the rental agreement, the landlord and the prospective tenant must separately negotiate those provisions. Under the rules, a rental agreement may include the following provisions only if the landlord and tenant separately negotiate them and include them in a separate written document entitled, "Nonstandard Rental Provision": 9 1. Expanded landlord right of entry into the dwelling unit. (ATCP 134.09(2)(c)) 2. Authorized deductions from a tenant's security deposit. (ATCP 134.06(3)(b)) 3. Holding tenants personal property (ATCP 134.09(4)(b)) Wis. Stat., sec. 704.17 Terminating a Tenancy/Risk of Eviction After giving proper notice to the tenant under Wis. Stat. sec. 704.17, a landlord may start eviction proceedings for any of the following reasons. A landlord may start an eviction in small claims court against a tenant who does not pay their rent, pays only part of their rent, or pays the rent late (even one day late). A landlord may also start the eviction process against a tenant who breaks the rules or terms of the rental agreement or causes damage to the property. A landlord who receives written notice from a law enforcement agency that the dwelling unit has been declared a nuisance under Wisconsin Statutes section 823.113(1) or (1m)(b) may begin eviction proceedings against the tenant. Tenants may be given either a written 5-day or 14-day notice to vacate the property. • 5-day “Cure” Notice. This written notice from the landlord gives the tenant five days to remedy or move out within five days. If the tenant remedies, the tenancy continues. If the tenant fails to remedy within 5 days, the landlord may start eviction proceedings under Wis. Stat. ch. 799. • 14-day Notice. This written notice specifies that the tenancy has ended because the tenant is in default under the rental agreement. This notice does not offer the option of paying the rent or correcting the breach. For month-to-month tenancies, a landlord may serve a 14-day Notice for either rent non-payment or for damage/lease breach, without first serving a 5-day Notice to cure. For tenants on a lease for one year or less who fail to pay a rent installment on time, the landlord must first provide a 5-day “cure” Notice and option to remedy before starting an eviction action under Wis. Stat. ch. 799. If the tenant remedies but fails to pay a rent installment on time again within 12 months, the landlord may then serve a 14-day notice with no option to cure. If a tenant refuses to leave the premises after receiving the proper notice, the landlord may start an eviction action in Small Claims Court. A tenant has the right to appear in court to contest the eviction. If the tenant fails to appear in court, the landlord may automatically obtain the eviction order. The landlord may not confiscate personal belongings or use force to remove tenants from the rental unit until the judge orders an eviction under Wis. Stat. sec. 799.44. Additionally, if the court decides that the tenants wrongfully stayed in the rental unit, the court can order the tenants to pay the landlord twice the amount of rent owed (prorated on a daily basis) for each day the tenants stayed in the rental unit unlawfully. Wis. Stat. sec. 704.27 Criminal Activity: Wis. Stat. sec. 704.17(3m) A landlord may serve a tenant a 5-day Notice to vacate the premises, without an option to stay, for criminal actions by the tenant or their guests which threaten the health or safety of, or right to peaceful enjoyment of the premises by, other tenants or immediate neighbors. This also applies to criminal activity which threatens the health or safety of the landlord or their agents, and to drug-related criminal activity on or near the premises. Such a 5-day Notice must include the following: • The basis for the notice. • A description of the criminal activity or drug- related criminal activity, the date it took place on, and identification or description of the individuals who took part in the activity. • Notice that the tenant may seek legal advice/volunteer clinic or tenant resource center. • Notice that the tenant has the right to contest the allegations before a court commissioner or judge if an eviction action is filed. This does not apply to a tenant who is a victim of the criminal activity. 10 Change of Ownership When a rental unit changes owners in the middle of a lease, the new owner must observe all terms of the existing lease. The new owners cannot make changes (except minor rule changes) until the lease expires. Wis. Stat. sec. 704.09(3). Foreclosure – Protecting Tenants at Foreclosure Act If a tenant suspects that their rental property is in foreclosure or is going into foreclosure, the tenant should continue to make their rental payments as required by the rental agreement unless the tenant is otherwise directed by the court or by the agent handling the foreclosure. A tenant can determine whether their rental property is in foreclosure by contacting the Clerk of Court for their county. A tenant can also check on the Internet at the Wisconsin Circuit Court access site, wcca.wicourts.gov. If a tenant finds that their rental property is in foreclosure, a tenant can contact the party foreclosing to determine how the foreclosure might affect their rental agreement. Even though the bank is receiving the rent payments, all other rights and responsibilities that the owner/landlord has with respect to the tenants remain in place. Until the bank actually forecloses, the owner is still the owner. Landlords must maintain the rental unit in a fit and habitable condition, the financial institution is not explicitly obligated to assume the maintenance duties of the owner. Penalties for violating the residential rental practice rule The department understands that a vast majority of landlords strive to fully comply with the rules voluntarily. When the department finds violations, it tries to obtain voluntary compliance from the appropriate party whenever possible. However, if enforcement action becomes necessary, violations of the rules in ATCP 134 may result in penalties. The actual penalties imposed by a court will depend on the seriousness of the violations and the damages or harm that resulted. Under Wis. Stat. sec. 100.26(6), a court may impose a civil forfeiture of not less than $100 nor more than $10,000 for each violation. A district attorney may also bring criminal misdemeanor charges for violations of these rules which may result in a fine not less than $25 nor more than, up to $5,000 for each violation or a year in the county jail, or both. See Wis. Stat. sec. 100.26(3). In addition to any other penalties, the court may issue an injunction telling the person not to violate the rules again in the future and may order the person who violated the rules to pay restitution to the victim. A person may also bring a private action under Wis. Stat. sec. 100.20(5) to recover the “pecuniary loss” caused by violations of ATCP 134. The Department of Agriculture, Trade, and Consumer Protection investigates alleged violations of the Residential Rental Practices rules. If prosecution is necessary, the department works in cooperation with the Wisconsin Department of Justice, or the local District Attorney. Private remedy for violations of the rules State law allows anyone who suffers monetary losses because of violations of the Residential Rental Practices rules to file a lawsuit on their own in state court (usually small claims court) against the violator. In a private individual lawsuit, the victim can recover from the violator up to twice the amount of their “pecuniary loss” that is their monetary “out-of-pocket” losses (or damages), plus costs including reasonable attorney's fees under Wis. Stat. sec. 100.20(5). How much a person actually recovers depends on whether the victim can satisfactorily prove to the court what monetary losses and damages are suffered. The exact amount the victim recovers is decided by the courts. Parties may seek this remedy directly in court without filing a complaint with the department. However, the department’s involvement can often assist in resolving a complaint. In addition, complaints assist the department in monitoring the business’ practices to ensure they are following Wisconsin’s Residential Rental Practices rules. For more information, see the notes following Wis. Adm. Code ch. ATCP 134.05(3) and ATCP 134.06(2)(a) which references a decision issued by the Wisconsin Supreme Court. That decision Pierce v. Norwick, 202 Wis. 2d 588 (1996), provides some guidance on what the courts look at in deciding how to award damages 11 against a landlord who violated the rules in Wis. Adm. Code ch. ATCP 134, regarding security deposits and earnest money deposits. Additional information Wis. Adm. Code ch. ATCP 134, Residential Rental Practices: http://docs.legis.wisconsin.gov/code/admin_code/atcp /090/134 Wis. Stat. ch. 704 Landlord and Tenant: http://docs.legis.wisconsin.gov/statutes/statutes/ 704.pdf Wis. Adm. Code ch. ATCP 125, Manufactured Home Communities: http://docs.legis.wisconsin.gov/code/admin_code/ atcp/090/125.pdf Wis. Stat. ch. 799, Sections 799.40 to 799.45 Evictions: http://docs.legis.wisconsin.gov/statutes/statutes/ 799.pdf Tenants’ Rights & Responsibilities - BCP fact sheet: https://datcp.wi.gov/Documents/ LTTenantsRights143.pdf For more information or to file a complaint, visit our website or contact: Wisconsin Department of Agriculture, Trade and Consumer Protection Bureau of Consumer Protection 2811 Agriculture Drive, PO Box 8911 Madison, WI 53708-8911 Email: DATCPHotline@wi.gov Website: datcp.wi.gov (800) 422-7128 TTY: (608) 224-5058 LT-LandlordTenantGuide497 (rev 7/19)