* Legislative History: M.C. 1961, Art. 14, §§ 2--7; Ord. No. 1985-48, 9/9/1985; Ord. No. 1986-45, 11/10/1986; Ord. No. 1987-59, 11/16/1987; Ord. No. 1990-30, 6/11/1990; Ord. No. 1992-23, 6/14/1993; Ord. No. 1994-35, 12/12/1994; Ord. No. 1995-43, 12/11/1995; Ord. No. 1999-41, 1/1/2000; Ord. No. 2002-26, 7/29/2002.

There are numerous dwelling units in the City which are rented, leased, or otherwise let to persons other than the owners of the dwelling unit. There also are numerous business (commercial) premises within the City. The City Council has the gravest responsibility for the protection of the health, safety, and welfare of all of the citizens of the City and of the occupants of these premises. It is declared to be the policy of the City that rental housing and business (commercial) premises in the City shall be licensed and regulated in such a manner as to ensure the protection of the health, welfare, and safety of those persons residing in, operating a business, or visiting such premises, and that such licensing and regulation shall be as set forth in this chapter. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-200)

A. Rental Housing License. The legal owner of record of a rental facility shall obtain a rental housing license before operating a building or dwelling as rental housing.
1. The rental housing license shall contain the name, street address, and telephone number of the property owner and emergency contact information for the owner or property manager or agent authorized to act for the owner on all matters relating to the rental housing. The rental housing license also shall specify the exact location of the rental housing for which the license is issued. If the property owner is a corporation, limited liability company, or other entity, the entity must be properly qualified to do business in Maryland under state law. All corporate, limited liability company, or other entity property owners and all non-Maryland resident property owners shall certify to the City the name, street address, and telephone number of an agent who resides in Maryland and is qualified to accept notices and service of process on behalf of the owner and must keep such information current. All owners or property managers or agents who are authorized to act for the owner on matters relating to the rental housing shall provide the City with emergency contact information and shall keep such information current.
2. The following types of rental housing licenses shall be issued:
a. Regular Rental Housing Licenses. Regular rental housing licenses shall be issued for a term of one calendar year.
b. Biennial Rental Housing Licenses. If the rental facility is well-maintained and qualifies for the Biennial Residential Rental Inspection Program, then a rental housing license shall be issued for a term of 2 calendar years. To be eligible for the Biennial Residential Rental Inspection Program, a rental facility may have no more than 5 minor violations of the Property Maintenance Code at the time of the licensing inspection and all violations must be corrected by the reinspection date set by the code official. Examples of minor violations include, but are not limited to, small wall cracks, slow faucet leaks, and defective bathtub caulking. The City Manager may remove a rental facility from the Biennial Residential Rental Inspection Program if: (i) 3 or more valid complaints are received about the rental facility or any rental unit during the license term; (ii) serious Property Maintenance Code violations occur in the rental facility or any rental unit during the license term; (iii) the owner or property manager of the rental facility fails to respond to City or valid tenant requests in a timely manner; or (iv) the City Manager, in his or her discretion, determines that there is other good cause for removing the rental facility from the biennial inspection program and placing the rental facility on an annual inspection schedule for a regular rental housing license or issuing a temporary rental housing license.
c. Temporary Rental Housing Licenses.
i. A temporary rental housing license may be issued for the following:
(A) That part of a newly constructed or renovated rental facility that has been completely constructed or renovated provided the owner has obtained a temporary certificate of occupancy and complied with all other applicable laws.
(B) A rental facility or unit that is temporarily vacant because the facility or unit is undergoing repairs or renovations.
(C) A rental facility or unit that is vacant, but the owner intends to rent or rerent the facility or unit within a 6-month period.
ii. A temporary rental license shall be issued for a 6-month term. The license fee for a temporary rental license shall be one-half of the regular rental housing license fee, as set forth in Section 6.08.030. A temporary rental license shall expire at the earlier of the end of the license term or when a regular or biennial rental housing license to operate the entire rental facility or the rental unit is issued.
iii. A temporary rental license may be renewed for up to 2 additional terms if:
(A) The owner has shown good cause why the construction, repairs or renovations to the rental facility or unit have not been completed; or
(B) The rental facility or unit remains vacant, but the owner desires to maintain the rental use of the rental facility or unit; provided, however, that such a vacant rental unit or facility must apply for a regular or biennial rental housing license for the vacant rental facility or unit within 15 business days of the rental of any such vacant rental facility or unit.
iv. All requirements of this chapter for issuance of a regular or biennial rental housing license shall apply to the issuance of a temporary rental license except that the rental facility or unit shall not be required to have passed a licensing inspection for compliance with the Property Maintenance Code.
B. Commercial Occupancy License. The owner of business premises shall obtain a commercial occupancy license.
1. The commercial occupancy license shall contain the name of the property owner and the owner’s street address and phone number. The commercial occupancy license also shall specify the exact location of the business premises and the number of square feet of enclosed area of the business premises. If the property owner is a corporation, limited liability company, or other entity, the entity must be properly qualified to do business in Maryland under state law. All corporate, limited liability company, or other entity property owners and all non-Maryland resident property owners shall certify to the City the name, street address, and telephone number of an agent who resides in Maryland and is qualified to accept notices and service of process on behalf of the owner and must keep such information current. All owners or property managers or agents who are authorized to act for the owner on matters relating to the business premises shall provide the City with emergency contact information and shall keep such information current.
2. For each business occupying the business premises, the owner shall provide the City with the name of each business, the type or nature of each business, the owner of each business, the exact location of each business, and the number of square feet of space occupied by each business in the business premises.
3. Commercial occupancy licenses shall be issued to the owner of the business premises and shall be issued for a period of one year from the date of issuance.
C. Exemptions. The following shall not require either a rental housing license or a commercial occupancy license:
1. Government buildings (for example, City, County, M-NCPPC, school, State, Federal, or post office);
2. Hospitals, nursing homes, convalescent homes, hospices, and other health care facilities and residences;
3. Churches, synagogues, parsonages, rectories, convent and parish houses, and other religious facilities;
4. Portions of residential buildings used for home occupations or home day care;
5. Hotels, motels, tourist homes, and bed and breakfast facilities;
6. Private schools and colleges and school dormitories. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-201)

A. Rental Housing License. Each owner of a rental facility shall pay an annual rental housing license fee of $84.00 per rental unit in the rental facility, for a regular rental housing license, and a biennial rental housing license fee of $84.00 for 2 years per rental unit in the rental facility for a biennial rental housing license. Rental housing license fees shall be due and payable 30 days after billing. License fees are nonrefundable and are not prorated in the event that a license is issued after January 1st of a calendar year or the number of rental units in a rental facility decreases during a calendar year.
B. Commercial Occupancy License. Each owner of business premises subject to licensing shall pay the following annual license fees for the business premises:
1. $75.00 for business premises containing up to 15,000 square feet of enclosed area; $150.00 for business premises containing between 15,001 and 45,000 square feet of enclosed area; and $225.00 for business premises containing more than 45,001 square feet of enclosed area.
2. Commercial occupancy license fees shall be due and payable 30 days after billing. License fees are nonrefundable and are not prorated for licenses issued after January 1st of a calendar year.
C. License Fee Increases.
1. Effective on January 1st of each year, beginning with January 1, 2003 when the annual rental housing license fee was $74.00 per rental unit, all license fees shall increase by an amount equal to the percent change in the Consumer Price Index, All Urban Consumers, DC-MD-VA-WV, All Items, November 1996 = 100 (“CPI-U”), or any successor or replacement to this CPI, rounded to the nearest dollar. All annual computations shall be based on the prior non-rounded figures; only the fee charged shall be rounded. The percent change in the CPI-U shall be computed for the 12-month period ending in September of each year from the average CPI-U for the 12-month period ending in September of the previous year. If there is no increase in the CPI-U, then the license fee shall remain the same.
2. Fees shall not be increased for the holder of a license during the time that license is valid, but nothing contained herein shall be construed to limit the amount of any fee due and payable at the time of renewal or reinstatement. If the number of rental units in a rental facility or the square footage of space in the business premises increases during the license term over the number specified in the application, then, within 15 business days of such increase, the license application shall be amended and any additional amount of license and inspection fee required by reason of such increase shall be paid.
D. Penalty for Late Payment of Fees. The license fee shall be subject to a 2% penalty per month, or any portion thereof, beyond the date the fee is due and payable. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-202)

A. Application for a rental housing license or commercial occupancy license shall be made by or on behalf of the property owner on a form provided by the City containing such information as necessary to administer and enforce the provisions of this chapter. Each license application shall be accompanied by the required license fee.
B. Before a rental housing license is issued, the following criteria shall have been met:
1. For a rental housing license, the property owner or the management agent must have a valid Takoma Park Landlord Certification. Certification must be renewed every 3 years or upon a change in the ownership or management of the rental housing, whichever occurs earlier.
2. For a rental housing license, the license applicant has complied with all applicable provisions of Annotated Code of Maryland, Title 6, Subtitle 8, Reduction of Lead Risk in Housing, as amended, or has submitted evidence that the rental facility is not subject to the provisions of that subtitle.
C. Licensing Inspections.
1. Currently Licensed Rental Facilities and Business Premises. Before the expiration of the license term, all interior and exterior areas of the rental facility and each rental unit of the rental facility and all exterior areas of the business premises, as applicable, shall be inspected by the City or its agent for compliance with the Property Maintenance Code (“licensing inspection”) and there must be no uncorrected violations of the Property Maintenance Code.
2. New Rental Facilities. Before a rental housing license shall be issued for the initial rental of a rental facility or any rental unit, all interior and exterior areas of the rental facility and each rental unit of the rental facility shall be inspected by the City or its agent for compliance with the Property Maintenance Code and there must be no uncorrected violations of the Property Maintenance Code.
D. Renewal. All rental housing licenses and commercial occupancy licenses shall be renewable upon payment of the appropriate fees and compliance with the provisions of this chapter. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-203)

A. If an applicant for or the holder of a license changes address, changes emergency contact information, changes the management or resident agent for the licensed rental facility or the licensed business premises, or transfers ownership, the applicant or the licensee shall notify the City within 15 business days of the change. The City may reject an application or suspend or revoke a license if the applicant or licensee does not notify the City as required by this section.
B. Any person who takes over the ownership or operation of a licensed rental facility or licensed business premises may transfer the license for the unexpired portion of the term for which the license was issued by applying to the City within 15 business days after taking over ownership or operations and paying a license transfer fee of $75.00.
C. Whenever the ownership of a rental facility or of business premises is transferred, the transferee shall promptly notify all tenants of the rental facility or the business premises of the name, street address, and telephone number of the transferee and of any property manager or agent authorized to act for the transferee on matters relating to the rental housing. The transferee also shall provide emergency contact information for the transferee and for any property manager or agent authorized to act for the transferee on matters relating to the rental housing. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-204)

The owner of a rental facility and of business premises shall display the license in the lobby, vestibule, rental or management office, or other prominent public place on the premises during the entire period the license is effective. If the rental facility or the business premises does not have a lobby or other appropriate public place on the premises for display of the license, then a copy of the license shall be available from the owner or the owner’s agent upon request. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-205)

A. In addition to the licensing inspection required pursuant to Section 6.08.040, the City or its agent may inspect rental housing or business premises at any time or times if the City or its agent receives a complaint or has reasonable grounds to believe that the rental housing or the business premises does not comply with the Property Maintenance Code and all applicable laws (“complaint inspection”).
B. As a condition of receiving and maintaining a license under this chapter, a property owner must agree to:
1. Allow access to the City or its agent for any inspections required under this chapter or the Property Maintenance Code; and
2. Notify any affected tenant of the rental housing whose unit requires inspection.
C. If an inspection indicates that any rental housing or business premises does not comply with the Property Maintenance Code and all applicable laws, the City may deny, suspend or revoke the license or proceed with enforcement under applicable provisions of law. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-7 § 1 (part), 2003: prior code § 6-206)

A. The City Manager may deny, suspend or revoke a rental housing license or commercial occupancy license for all or any unit or part of any rental facility or for business premises at any time if the owner or agent of the property, after 15 days written notice, does not eliminate or initiate bona fide efforts to eliminate violations of Title 6, Housing, or other applicable laws. Revocation, denial or suspension of a license is in addition to, and not a substitute for, any other penalties provided for the violations.
B. Upon making a determination that a license should be denied, suspended or revoked, or that any application, including an application for license issuance or license renewal, should be denied the City Manager shall issue a written notice of the action setting forth the specific reasons for the action and serve the notice on the owner or agent of the property as provided in Sections 1.04.120(C) and (D).
C. A license may be suspended immediately upon written notice to the owner or agent of the property if City Manager determines that there are violations of the Property Maintenance Code or other applicable law in the rental facility or in any rental unit or business premises which pose a serious threat to the life, safety, property, or health of the tenants of the rental facility or any rental unit or of the tenants or occupants of the business premises (“serious violations”).
D. When a license has been suspended or revoked or an application for a license has been denied, it shall be unlawful for the owner of the rental facility or the business premises to rent, lease, let for occupancy, or use any rental unit or space in the premises then vacant or becoming vacant until a license has been issued, reissued or reinstated.
E. Upon the denial, suspension, revocation or expiration of a license, notice, provided by the City, shall be posted and prominently displayed in the rental or management office of the rental facility, on the door of the affected rental unit or units, or in a public place on the premises, as the City Manager determines. The notice shall state substantially as follows:

RENTAL OR OCCUPANCY OF ANY UNIT IN THIS BUILDING NOW VACANT OR BECOMING VACANT AFTER THE DATE OF THIS NOTICE IS UNLAWFUL UNTIL A RENTAL HOUSING LICENSE HAS BEEN OBTAINED FROM THE CITY OF TAKOMA PARK AND IS DISPLAYED ON THE PREMISES.

Date of Notice: ____________________.

It is unlawful for any person to remove such notice until a license has been obtained or reinstated.

F. If a rental housing license is denied, revoked or suspended and the City Manager determines that there are serious violations of the Property Maintenance Code or other applicable law in the rental facility or in any rental unit, then the City Manager shall require the owner or agent of the property to give any tenants occupying the affected rental facility or the affected rental unit or units 2 months written notice to vacate. The 2-month notice must begin on the first day of the month after service of the notice on the tenant. In addition, a copy of the notice must be delivered to the City Manager. It is unlawful for any owner or agent or the property to penalize any tenant who vacates a rental unit under this provision prior to the expiration of the 2 months written notice to vacate by charging the tenant rent for any period after the tenant vacates the unit or by other fees, penalties, or deductions from the tenant’s security deposit. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-24 § 2 (part), 2003/Ord. 2003-7 § 1 (part), 2003: prior code § 6-207)

A. Any owner or agent of a rental facility or business premises aggrieved by an action of the City Manager under Section 6.08.080 may, within 15 days after service of the written notice of the action, appeal the action to the Commission on Landlord-Tenant Affairs by filing a written notice of appeal with the Commission. An appeal does not stay the City Manager’s action unless the Commission stays the action for good cause.
B. Within 30 days after a notice of appeal is filed, the Commission shall conduct a hearing, at which the owner or agent aggrieved shall have an opportunity to be heard. The Commission may summon all witness it deems necessary and/or require the production of relevant documents and records. Failure to comply with the summons is a violation of this chapter.
C. Commission hearings shall be conducted in accordance with the procedures set forth in Chapter 6.24, Commission on Landlord-Tenant Affairs, and the Commission’s regulations and rules of procedure, as applicable.
D. Within 30 days after the hearing, the Commission shall reverse, modify or affirm the action appealed. The Commission shall issue its opinion and order in writing and provide a copy to the owner or agent aggrieved. The Commission may extend the time for any hearing and the issuance of its opinion and order.
E. Any person aggrieved by the opinion and order of the Commission may appeal to the Circuit Court for Montgomery County within 30 days from the date of the Commission’s opinion and order. The procedures for an appeal of a Commission opinion and order shall be governed by Title 7, Chapter 200 (Judicial Review of Administrative Agency Decisions), of the Maryland Rules, as amended. An appeal does not stay enforcement of the Commission’s opinion and order unless the court grants a stay. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-24 § 2 (part), 2003: prior code § 6-208)

A license which has been denied, suspended or revoked shall be issued or reinstated upon a showing that the conditions and violations which led to the denial, suspension or revocation have been corrected and upon the payment of any license or other fees then due. In the case of a license suspension or revocation, a reinstatement fee of $250.00 also shall be paid. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-24 § 2 (part), 2003/Ord. 2003-7 § 1 (part), 2003: prior code § 6-209)

All provisions contained in this chapter applying to Commercial Occupancy Licenses shall expire on June 30, 2007, and shall be of no effect thereafter. (Ord. 2006-50 § 1 (part), 2006: Ord. 2003-24 § 2 (part), 2003/Ord. 2003-7 § 1 (part), 2003: prior code § 6-210)