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Elgin looking at increasing rental license fee

Elgin is considering increasing its rental license fee and making it yearly, rather than every three years, after seeing a dramatic increase in such housing in the last decade.

The city has about 39,500 residential units, of which more than 12,000 are rentals, Director of Neighborhood Services Colby Basham told the city council's committee of the whole last week. The city had 5,136 rental licenses in 2017 - a 254 percent increase since 2007 - and gets 40 to 50 new license applications per month, Basham said.

Basham proposed increasing the rental fee from $71 to $150 and making it yearly, which would require yearly inspections. The city generally wants to hold landlords more accountable, Basham said. Any final changes will require city council approval.

Rental properties make up 30 percent of housing and 43 percent of police calls, and they come with associated costs such as re-inspections and 311 call handling, he said. "That's not to say rental properties are crime-ridden. That's not the point. The point is the cost."

Rental licenses and fees vary greatly among suburbs, Basham said. The yearly fee is $90 in Aurora, $150 plus $50 for additional units in Streamwood, and $350 in West Chicago. There is a $500 rental fee every three years in Carpentersville.

Council members had a variety of comments. Councilman Terry Gavin proposed incremental increases to the rental fees rather than jumping from $71 to $150. Councilwoman Carol Rauschenberger said she was OK with the increase but said landlords in good standing could be rewarded with lower fees over time.

Basham also said the city could enact a policy with penalties for landlords who get cited repeatedly for violations.

Councilman Corey Dixon said the job of code inspectors, just like that of police officers, requires "the highest level of judgment," because they must be able to look at situations from all perspectives.

Basham also said he wants to enable code inspectors to print notices in the field instead of issuing handwritten ones. He would like the city to be able to communicate notices via email, too, which is not spelled out in the ordinance, he said.

There are seven code inspectors, two of whom are assigned to checking rental units, Basham said, adding he'd like the city to add more inspectors.

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