Urbana City Council voted 6-1 to increase the rental registration fees to bring in an estimated additional $48,500 annually for the city. The vote took place on Oct. 21 and will allow the city to hire a third housing inspector.

The rates for single-family homes, duplexes and multi-family homes are $55, $70 and $65 per building, respectively. Additionally, multi-family homes must pay an extra $16 per unit. Previously, single-family homes, duplexes and multi-family homes were charged $50, $60 and $45 per building, respectively. The previous additional fee for multi-family homes was $12 per unit.

Libby Tyler, the Community Development Services director for the city, said there were nearly 800 houses and duplexes that haven’t been inspected since the inspection program was put into effect six years ago.

“Something’s going to have to change,” said Bill Brown, Ward 4, noting that the inspections weren’t being completed in “any reasonable cycle.”

A memo from staff at the Department of Community Development Services recommends the ordinance in order to “add capacity to the housing program so that the inspectors can better meet the demands of the program and provide for a more acceptable cycle of systematic inspection.”    

Currently, Urbana employs two full-time housing inspectors who systematically review the 8,900 rental properties in Urbana, respond to tenant complaints and inspect motel and hotel properties.

Eric Jakobsson, Ward 2, said he had mixed feelings about the fee schedule.

“I really hate the idea of ramping up the fees on good landlords for problems that are necessitated by the bad landlords,” he said.

Mike Madigan, Ward 6, was the only council member to vote against the ordinance.

“What we’re talking about here is increasing fees on the good landlords, not just on the distressed properties,” he said. “We’re talking about raising everyone’s rent. Don’t … be under the illusion that (these fees) will not be passed on (to residents), because (they) will.”

Under Jakobbson’s proposal, a motion was passed 4-3 to have city staff conduct a study as to the feasibility of lowering rental registration fees for landlords who receive high marks on their inspections, therefore not costing the city as much for continued inspections.

Esther Patt, director of the Champaign-Urbana Tenant Union, said she didn’t think a graduated fee would effectively address the issue.

“If you looked at (the grading list) … you would see that more than four out of five buildings are graded B,” she said. “If you’re trying to (charge fees) based on grading, it’s not going to work because most of the properties get the same grade.”

Instead, Patt recommended that the council use fines to address problem landlords rather than a graduated fee structure.

“The way to go is to go after the folks who are causing the problem,” Madigan said. “This is not, in most cases, neglect on the landlord’s part. It’s repeated abuse by bad tenants. We are failing to address that (with fee increases).”

Eli can be reached at [email protected].