Denver regulators want to step up enforcement against landlords who refuse to comply with the city’s nascent .
The program, , requires all residential rentals in the city to be licensed. The goal, officials said at the time, “is to proactively enforce minimum required housing standards to ensure public health, safety and welfare.”
Most landlords have complied with this requirement, city officials say. The has issued more than 27,000 licenses encompassing 203,000 rental units as of this month, city figures show.
But there are still a small number of landlords who have yet to comply with the program — and city officials feel the current fine structure is inadequate to incentivize good behavior.
Excise and Licenses officials on Tuesday presented a proposed ordinance to the City Council’s Finance and Business Committee that would increase the maximum penalty to $5,000 per violation, per day. That’s more than five times the current top fine of $999.
Regulators said changes are needed to align licensing penalties with fines issued by the for housing code violations. There’s a perception of inconsistency if these fines are disparate, while some landlords may choose to pay the fines rather than correct the issues, Erica Rodgers, Excise and License’s policy director, told councilmembers.
The $5,000 fine represents the top end of the city’s fine structure — one officials hope to use infrequently.
The city issued more than 2,700 warnings to noncompliant landlords during the initial enforcement phase of the licensing program. Regulators dinged 431 landlords with a first citation, a $150 fine. Sixty-six operators received a second citation, a $500 fine. And the city issued just 24 third citations, which came with the maximum $999 fine.
“The majority (of landlords) are good actors,” said Diana Romero Campbell, councilmember for District 4, “but a few have taken advantage of our system.”
Tenant advocates applauded the proposed changes, saying the current fine structure does little to ensure accountability for larger, corporate landlords.
Still, “this is not a silver bullet,” said Eida Altman, director of the . “We actually have to use these fines.”
Drew Hamrick, general counsel and senior vice president of government affairs for the , called the ordinance “problematic” because it “discourages investment in rental housing.”
“People have to be willing to risk the capital to invest in Denver housing,” he told councilmembers.
The licensing program has been under scrutiny since its implementation.
A Denver Post investigation in May found the city has handed out licenses to building owners with years of documented violations, who continue to neglect their tenants immediately after receiving the all-clear.
The newspaper reviewed public health inspection records for the five most-fined apartment buildings in Denver, as well as several of the city’s most frequently cited properties. All but one received licenses, despite allegations from residents and serious habitability infractions.
