Rooming Business

Q: What constitutes a rooming house?
A: Any dwelling, which was constructed originally as a single-family dwelling, that rents out, or offers to rent out, five or more rooms without cooking facilities or private baths to more than four (4) unrelated persons within the structure qualifies as a rooming house and must obtain a rooming business license before tenancy can occur.

Q: What happens once a rooming house is identified?
A: In the event that a property is found to be an unlicensed rooming house, a notice of zoning code violation will be issued. Additionally, the property owner will need to apply for a rooming business license and ensure that their property meets all zoning and inspection requirements. Upon approval by the Zoning & Housing Divisions, the property owner will be required to attend a Rooming Business seminar prior to license issuance. The failure of a property owner to resolve occupancy violations or make application and receive approval for an identified rooming house within thirty (30) days will result in civil penalties.

Q: What does it cost to have a rooming business license?
A: A rooming business license costs two hundred fifty dollars ($250.00) per business location yearly. All taxes and fees are to be paid by the owner to the City of Raleigh Revenue Department.

Q: What are the standards for a rooming business?
A:
1. A resident manager must reside on the licensed premises.
2. A telephone must be located in the resident manager's living quarters.
3. The resident manager or licensee must attend one (1) of the City's quarterly residential management classes.
4. The license must be located in the resident manager's living quarters and be visible from the entrance way of the living quarter.
5. All sleeping quarters must be equipped with working heating facilities and a bed with a mattress.
6. The licensee must meet each prospective tenant to determine that such tenant does not intend to use the living quarters for illegal activities.
7. Eviction proceedings must commence against any tenant who engages in unlawful activity in or on the leased premises.
8. The business location cannot be in violation of any applicable zoning, minimum housing code or fire prevention code regulation.
9. An up-to-date floor plan and current list of occupants must be maintained by the resident manager and be posted in a conspicuous location.

Q: What are the penalties for operating a rooming business without a license?
A: Any owner found to be in operation of an unlicensed rooming business will be given a civil penalty of one thousand dollars ($1000.00), and an additional civil penalty of five hundred dollars ($500.00) for each day of non-compliance as designated in Section 12-2159 of the Raleigh Municipal Code.

Any licensed property found to be in violation of Rooming Business Standards will be subject to a civil penalty of five hundred dollars ($500.00). Any subsequent violation occurring on the same business location within 24 months of the first offense will be given a civil penalty in the amount of one thousand dollars ($1000.00).

Q: Are there any circumstances where a rooming business license is not required?
A: No license shall be required if the owner actually maintains and occupies one of the living quarters as their residence and there are no more than four (4) living quarters on the premises.

No license shall be required if there are no more than four (4) unrelated persons residing within the dwelling.

No license is required if the business accommodation is paying the State sales tax imposed under the North Carolina General Statute 105-164.4(a)(3).

No license is required if the structure serves as a (multi-unit) supportive housing residence, however, the location, pertinent information and residence's registration must be recorded with the City of Raleigh Revenue Collector.

Q: What is a (multi-unit) supportive housing residence?
A: A (multi-unit) supportive housing residence is any structure which accommodates persons who are disabled emotionally, mentally or physically or otherwise possess a disability that is protected by the provisions of either the Americans with Disabilities Act of 1990, 42 USC 12101 or G.S. Article 3, Chapter 168, along with support or supervisory personnel or family members who may reside, but are not required to reside, at the facility.

Q: What should I do if I think there's an unlicensed rooming business in my neighborhood?
A: The Zoning Code Compliance Division should be contacted (919-516-2555) in the event of a suspected rooming business operating in violation of the Short Term Residential Occupancies Ordinance. The Zoning Division will determine the status of the residence. If it is found that a house or building is in violation of city code and/or does not possess a valid Rooming Business license, the Zoning Division will initiate a Zoning Density Case and initiate fines as applicable.