Probationary Rental Occupancy Permit Ordinance

Q: Where can I find the PROP Ordinance in the City Code?
A: City Code Part 12 Chapter 2. Article G

Q: Does the PROP ordinance require that all rental properties get a permit?
A: No. A permit is only required for individual units or buildings where a problem has been identified, and that problem has not been resolved within the allotted period of time or where a pattern of repeat violations is established. PROP applies to rental properties only (including 20 plus apartment complexes) and does not apply to rooming houses, rest homes or hotels.

Q: Does the PROP ordinance apply to owner-occupied dwellings as well?
A: No. The PROP ordinance specifically applies only to rental units/dwellings offered for rent.

Q: When is a PROP required?
A: There are a number of ways a rental property can become eligible for PROP. Some examples are:

1. going past the deadline on a minimum housing case, or zoning case
2. having four (4) violations (public nuisances or housing) within a two (2) year period
3. three (3) noise/party citations/convictions
4. violation of zoning density

Q: What happens if there are more violations at the same address during the permit period?
A: The two (2) year permit will be extended for an additional two (2) years from the date of any violation. A $200 administrative fee is included with every violation. In addition, the first violation results in an immediate $50 civil penalty the 1st day, followed by a civil penalty of $50 per day until the violation is resolved. The owner will also receive a warning that the second violation may result in suspension of the property owner's right to rent that unit. A second violation at the same address during the permit period will result in a $250 civil penalty the 1st day and a $100 per day civil penalty until the violation is in compliance. Upon the second violation the permit is also revoked on that unit for 2 years. A third violation results in a $250 civil penalty the 1st day and a $250 per day civil penalty until compliance. These fines can also accrue if the owner fails to respond to notification that his/her property is eligible for PROP.

Q: Is there any avenue of appeal for PROP?
A: Yes. There are three (3) levels of appeals. Level one, the owner appeals in writing to the director of inspections. If the director denies the appeal, he/she sends the appeal request to the 2nd level of appeals; arbitration. At this point the owner will be responsible for a $200 administrative fee and half the costs of arbitration if the appeal is denied. If the arbitrator denies the appeal, the owner has the option to take his appeal to the 3rd level, which is City Council. No new evidence can be presented to the City Council.

Q: What is the intent of all this?
A: The PROP ordinance is intended to address 'problem rental properties' in established neighborhoods and is targeted toward rental properties where violations occur, not all rental properties. The goal is that no PROP will ever be issued, because if that is the case it means that rental property owners throughout the city are ensuring that their properties are well kept, up to city code and are well monitored and their tenants are respectful of their neighbors.

Q: Why aren't tenants held responsible?
A: Ultimately, the condition of the rental property and the activities of the tenants must be closely monitored by the property owner. Property owners are expected to write clear expectations of tenant behavior relative to neighbors into leases, and take action to encourage tenants to comply with these expectations or seek evictions for problem tenants. Rental property owners can also attend the City's Landlord Training Class given three (3) times a year for more useful information about renting and protecting rental property.

Q: What other measures are being taken to address problem rental properties?
A: The PROP program has gone through many changes since its inception February 2005. The most recent changes will affect the police aspects of the program. In addition to the ten (10) current ways a property can become eligible for PROP, criminal activities have been added. Three (3) convictions of criminal activities (such as prostitution, possession of stolen goods, liquor laws, weapons, weapon possession by a felon, gambling and/or disturbing the peace) within a two (2) year period on a rental property will make the property eligible for PROP. An amendment was also made to the noise/party convictions. In addition to three (3) convictions of the noise/party ordinance making a rental property eligible for PROP, there will be a civil penalty, issued by the police department upon the issuance of a noise/party ticket. Three (3) of these, with or without conviction, will make a rental property eligible for PROP.

Q: Are PROP and Rental Registration the same thing?
A: No. PROP and rental registration are two different programs. PROP applies to problem rental properties, while rental registration applies to all rental properties in Raleigh.