Huntington Town seeks to close loophole for some residential rentals owned by corporations
Huntington town is trying to change permitting requirements of rental properties owned by corporations. Credit: Chris Ware
Town of Huntington officials plan to close a loophole in town code that allows some landlords to skip safety inspections and fees by avoiding the requirement of getting a rental permit.
Some LLCs and corporations do not apply for the required rental permit in order to avoid permit fees and inspections, town officials said. The landlords cite an exemption for a rental permit in town code if the dwelling is owner occupied.
Town officials want to update town code to require LLCs or corporations to show proof that a resident of a rental property owns 51% or more of the LLC or corporation, and is therefore exempt from having a rental permit. The change would not apply to trusts.
Town Supervisor Ed Smyth said the proposed change would make rentals safer by allowing inspections or by having an owner on site. He added it also helps owner-occupied landlords "to operate with legal protections of a limited liability company."
The town requires rental permits for most dwellings that are to be rented out. Rental permits are not needed when any portion of the property is owner-occupied or the owner’s immediate family lives in the dwelling. The town also does not require a rental permit when there is an on-site management office.
But Smyth said some LLC-owned properties were being rented to people who were not related to anyone associated with the LLC.
Town officials said in the past they could not address tenant complaints such as no heat, exposed wires and overcrowding from some LLC-owned rental properties because they did not have a town rental permit.
When confronted by the town’s public safety department, the LLC principal would say a member of the LLC resides at the property so a permit was not needed.
Smyth said the loophole is there because town code does not mandate an LLC or corporation prove they own the property or a family member lives there.
Non-owner-occupied rentals require a permit and are inspected every two years either by the town or a certified third party such as a licensed engineer or certified architect. For ADU’s, accessory dwelling units, the town also requires a permit and they are subject to town inspections every two years. The inspections coincide with the rental permit which costs $475.
If the proposed legislation is approved, LLC’s and corporations would be subject to the same inspection schedule and fees as non-owner occupied rentals.
Roger Weaving, president of the Huntington Township Housing Coalition, which advocates for affordable housing in the town, said he thinks adding the proposed language to town code is a good idea.
"There are a lot of places corporations are used to hide stuff," Weaving said. "If you’re going to claim that one of the principal owners is a resident there you should be able to prove it."
He added he doesn’t think it will likely impact affordable rentals and are most likely aimed at market rate apartment landlords.
"You have to go through a lot of scrutiny to get an affordable designation, which are usually done by corporations where the people are not going to be claiming to live there," Weaving said.
A public hearing was held on the matter Aug. 6. The town has 90 days from the public hearing to approve the change.
Town of Huntington officials plan to close a loophole in town code that allows some landlords to skip safety inspections and fees by avoiding the requirement of getting a rental permit.
Some LLCs and corporations do not apply for the required rental permit in order to avoid permit fees and inspections, town officials said. The landlords cite an exemption for a rental permit in town code if the dwelling is owner occupied.
Town officials want to update town code to require LLCs or corporations to show proof that a resident of a rental property owns 51% or more of the LLC or corporation, and is therefore exempt from having a rental permit. The change would not apply to trusts.
Town Supervisor Ed Smyth said the proposed change would make rentals safer by allowing inspections or by having an owner on site. He added it also helps owner-occupied landlords "to operate with legal protections of a limited liability company."
The town requires rental permits for most dwellings that are to be rented out. Rental permits are not needed when any portion of the property is owner-occupied or the owner’s immediate family lives in the dwelling. The town also does not require a rental permit when there is an on-site management office.
But Smyth said some LLC-owned properties were being rented to people who were not related to anyone associated with the LLC.
Town officials said in the past they could not address tenant complaints such as no heat, exposed wires and overcrowding from some LLC-owned rental properties because they did not have a town rental permit.
When confronted by the town’s public safety department, the LLC principal would say a member of the LLC resides at the property so a permit was not needed.
Smyth said the loophole is there because town code does not mandate an LLC or corporation prove they own the property or a family member lives there.
Non-owner-occupied rentals require a permit and are inspected every two years either by the town or a certified third party such as a licensed engineer or certified architect. For ADU’s, accessory dwelling units, the town also requires a permit and they are subject to town inspections every two years. The inspections coincide with the rental permit which costs $475.
If the proposed legislation is approved, LLC’s and corporations would be subject to the same inspection schedule and fees as non-owner occupied rentals.
Roger Weaving, president of the Huntington Township Housing Coalition, which advocates for affordable housing in the town, said he thinks adding the proposed language to town code is a good idea.
"There are a lot of places corporations are used to hide stuff," Weaving said. "If you’re going to claim that one of the principal owners is a resident there you should be able to prove it."
He added he doesn’t think it will likely impact affordable rentals and are most likely aimed at market rate apartment landlords.
"You have to go through a lot of scrutiny to get an affordable designation, which are usually done by corporations where the people are not going to be claiming to live there," Weaving said.
A public hearing was held on the matter Aug. 6. The town has 90 days from the public hearing to approve the change.
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