HomeMy WebLinkAboutOrdinance 6800113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6800
File Number: 2024-587
ENACT CHAPTER 120.03 (ORDINANCE):
AN ORDINANCE TO ENACT § 120.03 LIMITATIONS ON RENTAL APPLICATION AND BACKGROUND
CHECK FEES
WHEREAS, the Fayetteville City Council recognizes the need to ensure that rental application and background check
fees are fair and reasonable, and to prevent excessive charges that burden prospective tenants; and
WHEREAS, the City Council acknowledges that exorbitant fees can create unnecessary financial barriers for
individuals and families seeking housing; and
WHEREAS, on April 2, 2024, the City Council passed Resolution 117-24 which declared a housing crisis in the City
of Fayetteville; and
WHEREAS, the Council believes it is in the best interest of the community to promote equitable housing practices and
enhance access to affordable housing options; and
WHEREAS, based upon data compiled by Council Member Moore that was provided by landlords/property managers
operating in the City of Fayetteville, and which was presented to the City Council, the City Council determines that
total combined forty dollar ($40.00) limit on application and background check fees is reasonable and will allow
landlords and property managers to recover their actual costs of screening potential tenants; and
WHEREAS, the City Council encourages the use of shared application systems that save prospective residents money
and save landlords time; and
WHEREAS, it is recognized by the City Council that in order to protect the health, safety, and welfare of citizens and
residents of Fayetteville, rules should be set forth reasonably regulating the amounts that can be charged to potential
tenants for application and background check fees.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby enacts § 120.03 Limitations on Rental
Application and Background Check Fees as follows:
"§ 120.03 Limitations on Rental Application and Background Check Fees
Page 1
Ordinance: 6800
File Number: 2024-587
A. Definitions:
"Rental application fee" means any fee charged by a landlord or property manager to a potential tenant for the
processing of their rental application.
"Background check fee" means any fee charged by a landlord or property manager to a potential tenant for
conducting background checks including, but not limited to, credit, criminal, and employment history checks.
A one-time fee charged by a service that allows renters to reuse background check results for multiple rental
applications over a period of at least 30 days is exempt, provided no additional rental application fee is charged
directly by the landlord or property manager.
B. Limitation for the total allowed fee for application and background check.
1. A landlord or property manager shall not charge a potential tenant a rental application fee and/or a background
check fee that exceeds forty dollars ($40.00) total for both fees.
2. If a landlord or property manager does not pay for background check for the potential tenant, the maximum
that can be charged for a rental application fee shall be twenty dollars ($20.00).
C. Refunds.
If a landlord or property manager does not perform a background check for a potential tenant after charging a
background check fee, the landlord or manager must refund the fee in full to the potential tenant.
D. Penalty.
Any landlord or property manager who fails to obey any requirement of this section shall be subject to the penalties
permitted pursuant to § 10.99 General Penalty of the Fayetteville Code."
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this Ordinance shall take
effect 90 days from passage and approval.
Section 3: That the City Council of the City of Fayetteville, Arkansas requests that the Mayor communicate and give
notice to the public and landlords of this change during the delayed effective period and create a pathway to a
successful implementation of this change
PASSED and APPROVED on October 15, 2024
Attest:
f r1Y'i I i '✓;;
Kara Paxton, City erk Treasurer = ;
This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas.
Amount Paid: $
Page 2
CITY OF CITY COUNCIL MEMO
FAYETTEVILLE
ARKANSAS 2024-587
MEETING OF OCTOBER 15, 2024
TO: Mayor Jordan and City Council
THRU: Kit Williams, City Attorney
FROM: Sarah Moore, City Council Member - Ward 1 Position 2
SUBJECT: AN ORDINANCE TO ENACT § 120.03 Limitations on Rental Application and
Background Check Fees
RECOMMENDATION:
Enact § 120.03 Limitations on Rental Application and Background Check Fees
BACKGROUND:
The Fayetteville City Council recognizes the need to ensure that rental application and background check fees
are fair and reasonable, and to prevent excessive charges that burden prospective tenants. The City Council
acknowledges that exorbitant fees can create unnecessary financial barriers for individuals and families
seeking housing. On April 2, 2024, the City Council passed Resolution 117-24 which declared a housing crisis
in the City of Fayetteville. The Council believes it is in the best interest of the community to promote equitable
housing practices and enhance access to affordable housing options. Based upon data compiled by Council
Member Moore that was provided by landlords/property managers operating in the City of Fayetteville, and
which was presented to the City Council, the City Council determines that adopting a $20.00 limit on
application fees and a $50.00 limit on background check fees is reasonable and will allow landlords and
property managers to recover their actual costs of screening potential tenants. It is recognized by the City
Council that in order to protect the health, safety, and welfare of citizens and residents of Fayetteville, rules
should be set forth reasonably regulating the amounts that can be charged to potential tenants for application
and background check fees.
DISCUSSION:
BUDGET/STAFF IMPACT:
N/A
ATTACHMENTS: Info About Properties - Turning In to City (#3), Agenda Request - Moore (#4), Moore Email
Approval (#5), Limitations On Rental Application And Background Check Fees (#6), Proposed Revision of
Original Ordinance to Limit Rental Application and Background Check Fees (#7)
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
City Of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Legislation Text
File #: 2024-587
AN ORDINANCE TO ENACT § 120.03 Limitations on Rental Application and Background
Check Fees
AN ORDINANCE TO ENACT § 120.03 LIMITATIONS ON RENTAL APPLICATION AND
BACKGROUND CHECK FEES
WHEREAS, the Fayetteville City Council recognizes the need to ensure that rental application and
background check fees are fair and reasonable, and to prevent excessive charges that burden prospective
tenants; and
WHEREAS, the City Council acknowledges that exorbitant fees can create unnecessary financial
barriers for individuals and families seeking housing; and
WHEREAS, on April 2, 2024, the City Council passed Resolution 117-24 which declared a housing
crisis in the City of Fayetteville; and
WHEREAS, the Council believes it is in the best interest of the community to promote equitable
housing practices and enhance access to affordable housing options; and
WHEREAS, based upon data compiled by Council Member Moore that was provided by
landlords/property managers operating in the City of Fayetteville, and which was presented to the City
Council, the City Council determines that total combined forty dollar ($40.00) limit on application and
background check fees is reasonable and will allow landlords and property managers to recover their
actual costs of screening potential tenants; and
WHEREAS, the City Council encourages the use of shared application systems that save prospective
residents money and save landlords time; and
WHEREAS, it is recognized by the City Council that in order to protect the health, safety, and welfare
of citizens and residents of Fayetteville, rules should be set forth reasonably regulating the amounts that
can be charged to potential tenants for application and background check fees.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby enacts §
120.03 Limitations on Rental Application and Background Check Fees as follows:
Page 1
Ordinance: 6800
File Number. 2024-587
"§ 120.03 Limitations on Rental Application and Background Check Fees
A. Definitions:
1. "Rental application fee" means any fee charged by a landlord or property manager to a potential
tenant for the processing of their rental application.
2. 'Background check fee" means any fee charged by a landlord or property manager to a potential
tenant for conducting background checks including, but not limited to, credit, criminal, and
employment history checks. A one-time fee charged by a service that allows renters to reuse
background check results for multiple rental applications over a period of at least 30 days is
exempt, provided no additional rental application fee is charged directly by the landlord or
property manager.
B. Limitation for the total allowed fee for application and background check.
1. A landlord or property manager shall not charge a potential tenant a rental application fee and/or
a background check fee that exceeds forty dollars ($40.00) total for both fees.
2. If a landlord or property manager does not pay for background check for the potential tenant, the
maximum that can be charged for a rental application fee shall be twenty dollars ($20.00).
C. Refunds.
If a landlord or property manager does not perform a background check for a potential tenant after
charging a background check fee, the landlord or manager must refund the fee in full to the potential
tenant.
D. Penalty.
Any landlord or property manager who fails to obey any requirement of this section shall be subject to
the penalties permitted pursuant to § 10.99 General Penalty of the Fayetteville Code."
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this
Ordinance shall take effect 90 days from passage and approval.
Section 3: That the City Council of the City of Fayetteville, Arkansas requests that the Mayor
communicate and give notice to the public and landlords of this change during the delayed effective
period and create a pathway to a successful implementation of this change
Page 2
Company
Number
How much is their application fee?
If background check is not included in the application fee, how much is it? What background check company is used? Notes
1
Sweetser Properties
489- 443-4601
$50 for adults or $60 for married couples
Background check is included in fee Could not give a clear answer when called, said
that their service is 'national'
2
The Links at Fayetteville
479- 966-4340
$40
Background check is included in fee RentGrow
3
Elevation Real Estate
479-715-8045
Called twice but was sent to voicemail each
time
4
Trinity Multifamily- Fayetteville
479-301-2095
Sent to voicemail
5
Kotoumbi Properties
479-249-9876
$20-$30
Zillow
6
Jordan Rentals
479- 521-7200
$75
Qualifier
7
Gayer Properties
479-841-4113
$30
Does not know the background check service they
use- "It's all online"
8
University House Apartments
479- 777-4587
$30
Staff did not know what company was used
9
10
11
Yugo Apartments Fayetteville
NWA Realty and Property Management
East Oaks/ Oakshire 1/11, Oakshire East
479-287-4479
479-251-9400
479-443-7278
$27.50
$40
Automated operator does not tell you the
application fee, that they are full and to join a Automated operator
waitlist online
Background check is included in fee
12
The Reserve on Cato Springs
479-442-7540
Property does not answer when called
13
The Landing at Fayetteville
479-396-3125
NO FEE
There is a background check screening process that takes 3-7 days Does not know the name of the online service
14
The Cottages of Hollywood
479-249-8847
$210
Background check and admin fees are included in the application fee
15
SoFayl-ofts
479-480-3499
$60 applicaiton fee, $150 admin fee
Background check and admin fees are included in the application fee
16
Garden Park Apartments
479-397-3825
$45
Background and credit check included in application fee
17
Willow Park Apartments
479-446-7901
Property does not answer when called
18
Pleasant Woods Townhomes (Elder
Property Management)
479-756-5320
$35
Background and credit check included in application fee
19
Hog Trough Townhouses
479-480-8001
Number goes to voicemail when called
20
Ruby Creek /Chestnut Apartments
479-521-3313
$60 application fee, $200 admin fee once approved
Background and credit check included in application fee
21
South Creekside Apartments
479-521-2761
$60 application fee
Background and credit check included in application fee
22
Pierce Properties
479-444-7440
$50-will become $60 as of October 1st
Background and credit check included in application fee
23
Mountain Ranch Apartments
479-349-2198
$45
Background and credit check included in application fee
24
Paradise View/Paradise Point
Apartments
479-521-8299
$40
Background and credit check included in application fee
25
Sugar Tree Apartments
479-442-7687
$35
Background and credit check included in application fee
26
Greenway Flats Apartments
479-324-2210
$60 applicaiton fee, $150 admin fee
Background and credit check included in application fee
27
Appleby Apartments
479-443-9258
$40
Background and credit check included in application fee
28
Chamberland Square Apartments
479-575-0400
Number goes to voicemail when called
29
The Reserve at Steele Crossing
479-251-0700
$50
Background and credit check inlcuded in application fee
30
The Vineyards on Garland
479-378-0553
Number goes to voicemail when called
31
Crafton Place, Chestnut 11, Star Fire
Apartments
479-521-6895
$40
Background and credit check inlcuded in application fee
32
Fairview Apartments
479-443-4200
Number is no longer in service
33
The Flats on Hill Apartments
479-420-0531
$30
Background check takes up the entire application fee
34
Myers Apartments
479-670-1189
Number is no longer in service
Civic Clerk Item No.: 2024-
AGENDA REQUEST FORM
FOR: Council Meeting of October 15, 2024
FROM: Council Member Sarah Moore
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
AN ORDINANCE TO ENACT § 120.02 LIMITATIONS ON RENTAL APPLICATION
AND BACKGROUND CHECK FEES
APPROVED FOR AGENDA:
Sarah Moo e
City Council Member
Kit Will-iu
City Attorney
Approved as to form
Date
Date
Zg - Z,�-f
Barnes, Stacy
From: Pennington, Blake
Sent: Thursday, September 26, 2024 4:15 PM
To: Williams, Kit; Barnes, Stacy
Subject: Fwd: Application/Background check fee ordinance- ready to go forward
Attachments: image001.png; Info About Properties - Turning In to City.pdf
Here's the attachment for the new item from Sarah. I didn't think to include a severability clause, but I think we should
include one.
The agenda request form should be in the October 15 folder.
Blake E. Pennington
Senior Assistant City Attorney
113 W. Mountain St.
Fayetteville, AR 72701
Tele: (479) 575-8313
Fax: (479) 575-8315
Sent from my iPhone
Begin forwarded message:
From: "Moore, Sarah" <sarah.moore@fayetteville-ar.gov>
Date: September 26, 2024 at 5:09:55 PM EDT
To: "Pennington, Blake" <bpennington@fayetteville-ar.gov>
Subject: Application/Background check fee ordinance- ready to go forward
Blake
Afternoon. I am ready to move forward with the latest version that you provided to me of the
ordinance with the 2 word revision from Kit. Additionally, the exhibit of the properties survey is
attached. There may be additional inquiries made and if that occurs, I will revise closer to the cc
meeting. For now, this can be turned in alongside the ordinance.
Please let me know if you have any questions.
Thank you.
Sarah Moore
Fayetteville City Council, Ward 2
sarah.moore@fayetteville-ar.gov
479.263.6629
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22
Received From: Kara Paxton 10/ 15/2024 8:26 AM
DEPARTMENTAL CORRESPONDENCE
OFFICE OF THE
CITY ATTORNEY
TO: Mayor Jordan
City Council
Kara Paxton, City Clerk/Treasurer
CC: Susan Norton, Chief of Staff
FROM: Kit Williams, City Attorney
DATE: October 14, 2024
Kit Williams
City Attorney
Blake Pennington
Senior Assistant City Attorney
Hannah Hungate
Assistant City Attorney
Stacy Barnes
Paralegal
RE: Proposed Revision of Original Ordinance to Limit Rental Application
and Background Check Fees
Following concerns stated during the Agenda Session about trying to
require background checks to accepted by subsequent landlords as well as later
information from rental management companies, Council Member Sarah Moore
requested a revision of her proposal. I assisted her in this revision.
Council Member Moore requested that I send to the Mayor and Council
what she will likely request the Council to amend her original proposal which is
on the Agenda to the attached revised Ordinance attached to this memo. The
primary changes were to reduce the total allowed fee from $20.00 for application,
plus $50.00 for any and all background checks, to a $40.00 limit total for both
fees. The other major change would remove requirements for landlords to accept
and use previous background checks ordered by other landlords. That
requirement was legally iffy and so removed.
Please review what would actually be the code section if enacted (Section 1
of Ordinance) for Council Member Moore's final proposal. I appreciate her
proposed removal of the background check reuse provision which I believe was
the most legally suspect provision.
ORDINANCE NO.
AN ORDINANCE TO ENACT § 120.03 LIMITATIONS ON RENTAL APPLICATION
AND BACKGROUND CHECK FEES
WHEREAS, the Fayetteville City Council recognizes the need to ensure that rental application
and background check fees are fair and reasonable, and to prevent excessive charges that burden
prospective tenants; and
WHEREAS, the City Council acknowledges that exorbitant fees can create unnecessary
financial barriers for individuals and families seeking housing; and
WHEREAS, on April 2, 2024, the City Council passed Resolution 117-24 which declared a
housing crisis in the City of Fayetteville; and
WHEREAS, the Council believes it is in the best interest of the community to promote equitable
housing practices and enhance access to affordable housing options; and
WHEREAS, based upon data compiled by Council Member Moore that was provided by
landlords/property managers operating in the City of Fayetteville, and which was presented to
the City Council, the City Council determines that total combined forty dollar ($40.00) limit on
application and background check fees is reasonable and will allow landlords and property
managers to recover their actual costs of screening potential tenants; and
WHEREAS, the City Council encourages the use of shared application systems that save
prospective residents money and save landlords time; and
WHEREAS, it is recognized by the City Council that in order to protect the health, safety, and
welfare of citizens and residents of Fayetteville, rules should be set forth reasonably regulating
the amounts that can be charged to potential tenants for application and background check fees.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby enacts § 120.03
Limitations on Rental Application and Background Check Fees as follows:
"§ 120.03 Limitations on Rental Application and Background Check Fees
(A) Definitions:
(1) "Rental application fee" means any fee charged by a landlord or property manager
to a potential tenant for the processing of their rental application.
(2) "Background check fee" means any fee charged by a landlord or property
manager to a potential tenant for conducting background checks including, but not
limited to, credit, criminal, and employment history checks. A one-time fee
charged by a service that allows renters to reuse background check results for
multiple rental applications over a period of at least 30 days is exempt, provided
no additional rental application fee is charged directly by the landlord or property
manager.
(B) Limitation for the total allowed fee for application and background check.
(1) A landlord or property manager shall not charge a potential tenant a rental
application fee and/or a background check fee that exceeds forty dollars ($40.00)
total for both fees.
(2) If a landlord or property manager does not pay for background check for the
potential tenant, the maximum that can be charged for a rental application fee
shall be twenty dollars ($20.00).
(C) Refunds.
If a landlord or property manager does not perform a background check for a potential
tenant after charging a background check fee, the landlord or manager must refund the
fee in full to the potential tenant.
(D) Penalty.
Any landlord or property manager who fails to obey any requirement of this section shall
be subject to the penalties permitted pursuant to § 10.99 General Penalty of the
Fayetteville Code."
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that this
Ordinance shall take effect 90 days from passage and approval.
Section 3: That the City Council of the City of Fayetteville, Arkansas requests that the Mayor
communicate and give notice to the public and landlords of this change during the delayed
effective period and create a pathway to a successful implementation of this change
PASSED and APPROVED this 15th day of October, 2024.
APPROVED: ATTEST:
In
LIONELD JORDAN, Mayor
KARA PAXTON, City Clerk/Treasurer
Form vl.54
it
RECEIVED
Account#: NWCL5004205 OCT 2 2 2024
Company: CITY OF FAYETTEVILLE-CLERKS OFF1 CITY OF FAYETTEVILLE
113 W MOUNTAIN CITY CLERK'S OFFICE
FAYE 1'1'EVILLE,AR 72701
Ad number#: 449753
PO #:
Matter of: Ord. 6800
AFFIDAVIT•STATE OFARKANSAS
I, Maria Hernandez-Lopez ,do solemnly swear that I am the Legal Clerk of the NWA Democrat Gazette,a daily
newspaper printed and published in WASHINGTON/BENTON county,State ofARKANSAS;that I was so related to
this publication at and during the publication of the annexed legal advertisement in the matter of:
Ord.6800
Pending in the court,in said County,and at the dates of the several publications of said advertisement stated below,and
that during said periods and at said dates,said newspaper was printed and had a bona fide circulation in said County,
that said newspaper had been regularly printed and published in said county and had a bona fide circulation therein for
the period of one month before the date of the first publication of said advertisement;and that said advertisement was
published in the regular daily issues of said newspaper as stated below.
And that there is due or has been paid the NWA Democrat Gazette for publication the sum of$307.04.
(Includes$0.00 Affidavit Charge).
NWA Democrat Gazette 10/20/24;NWA nwaonline.com 10/20/24
\\\1\111�ii!IlI////
,\, 8 Ras
Legal Clerk o • � ; ;•
�-�
State of ARKANSAS,County of Sebastian OTAR y yv•.
Subscribed and sworn to before me on this 21st day of October, 2024 . pL'B o0
=r /
r
NOTARY PUBLIC
Ordinance:6800 manager does not pay for back-
File Number: 2024-587 ground check for the potential
ENACT CHAPTER 120.03(OR- tenant,the maximum that can
DINANCE): be charged for a rental applica-
AN ORDINANCE TO ENACT§ tion fee shall be twenty dollars
120.03 LIMITATIONS ON ($20.00).C.Refunds.
RENTAL APPLICATION AND If a landlord or property man-
BACKGROUND CHECK FEES ager does not perform a back-
WHEREAS, the Fayetteville ground check for a potential
City Council recognizes the tenant after charging a back-
need to ensure that rental appli- ground check fee,the landlord
cation and background check or manager must refund the fee
fees are fair and reasonable, in full to the potential tenant.
and to prevent excessive D.Penalty.
charges that burden prospective Any landlord or property man-
tenants;and ager who fails to obey any re-
WHEREAS,the City Council quirement of this section shall
acknowledges that exorbitant be subject to the penalties per-
fees can create unnecessary fi- mitted pursuant to§10.99 Gen-
nancial barriers for individuals eral Penalty of the Fayetteville
and families seeking housing; Code."
and Section 2:That the City Coun-
WHEREAS,on April 2,2024, cil of the City of Fayetteville,
the City Council passed Resolu- Arkansas hereby determines
tion 117-24 which declared a that this Ordinance shall take
housing crisis in the City of effect 90 days from passage
Fayetteville;and and approval.
WHEREAS,the Council be- Section 3:That the City Coun-
lieves it is in the best interest of cil of the City of Fayetteville,
the community to promote equi- Arkansas requests that the
table housing practices and en- Mayor communicate and give
hence access to affordable notice to the public and land-
housing options;and lords of this change during the
WHEREAS,based upon data delayed effective period and
compiled by Council Member create a pathway to a success-
Moore that was provided by ful implementation of this
landlords/property managers change
operating in the City of Fayet- PASSED and APPROVED on
teville, and which was pre- October 15,2024
sextet to the City Council,the Approved:
City Council determines that Lioneld Jordan,Mayor
total combined forty dollar Attest:
($40.00)limit on application and Kara Paxton,
background check fees is rea- City Clerk Treasurer
sonable and will allow landlords This publication was paid for
and property managers to re- by the City Clerk-Treasurer of
cover their actual costs of the City of Fayetteville,
screening potential tenants;and Arkansas.
WHEREAS,the City Council Amount Paid:$307.04
encourages the use of shared October 20,2024 449753
application systems that save
prospective residents money
and save landlords time;and
WHEREAS,it is recognized by
the City Council that in order to
protect the health,safety,and 1
welfare of citizens and residents
of Fayetteville,rules should be
set forth reasonably regulating
the amounts that can be
charged to potential tenants for
application and background
check fees.
NOW,THEREFORE,BE IT OR-
DAINED BY THE CITY COUNCIL
OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City
Council of the City of Fayet-
teville,Arkansas hereby enacts
§120.03 Limitations on Rental
Application and Background
Check Fees as follows:
'§ 120.03 Limitations on
Rental Application and Back-
ground Check Fees
A.Definitions:
1. "Rental application fee"
means any fee charged by a
landlord or property manager to
a potential tenant for the pro-
cessing of their rental applica-
tion.
2. "Background check fee"
means any fee charged by a
landlord or property manager to
a potential tenant for conducting
background checks Including,
but not limited to,credit,crimi-
nal, and employment history
checks.A one-time fee charged
by a service that allows renters
to reuse background check re-
sults for multiple rental applica-
tions over a period of at least 30
days is exempt,provided no ad-
ditional rental application fee is
charged directly by the landlord
or property manager.
B.Limitation for the total al-
lowed fee for application and
background check.
1.A landlord or property man-
ager shall not charge a potential
tenant a rental application fee
and/or a background check fee
that exceeds forty dollars
($40.00)total for both fees.
2.II a landlord or property
