Division 4. Rental Housing

No person shall conduct or operate or cause to be operated either as owner, lessee, agent, or in any other capacity within the County any single-family rental facility or any multifamily rental facility as defined in Section 13-138(a) without having first obtained a license as provided in this Division.

Implementation of this Division shall be established by procedures adopted by the Director.

Notwithstanding the provisions of Subsection (a), above, no license shall be required for a single-family rental facility in any of the following circumstances. Documentation of the license exemption must be provided to and accepted by the Department for the provisions below.

The legal owner of record of each existing single-family rental facility or multifamily rental facility shall make written application to the Director for a license for such use, on a form to be supplied by the Director and containing such information as necessary to administer and enforce the provisions of, and to ensure compliance with the provisions of, this Division and the Housing Code in its entirety. Such information shall include, but shall not be limited to, the name and physical address of the legal owner of record's authorized agent and resident agent on an on-line searchable public database of all licensed single-family rental facility and multifamily rental facility housing in the County maintained by the Department of Permitting, Inspections and Enforcement, and the name and physical address of the legal owner of record's mortgage holder and proof of insurance and the name and physical address of the legal owner of record's insurance company made available by the Department to the public in a timely manner, upon request. There shall be a continuing obligation on the part of the license holder to update the information on the application and/or to supply information not previously submitted. In addition, the legal owner of record of each such multifamily rental facility newly constructed shall make written application to the Director for a license, as herein provided, prior to any initial occupancy.

No license for a single-family rental facility will be granted until the premises meets the minimum standards of the County Code.

The license application shall contain authorization for the licensee to have the option to consent in writing to service of notice of violation, civil citation, and administrative citation of Housing Code violations by email. The license application shall provide for the placement of the optional signature of an applicant for service by email. The license application shall provide that the licensee is obligated to maintain an updated email address. If email consent is provided then, service by certified mail or first-class mail is not required. Failure to update the Department with a new email address is not a basis to challenge service and shall preclude the applicant from any notice-related defenses.

In this section the following words have the meanings indicated:

For an application for a single-family rental facility or multifamily rental facility in a Common Ownership Community, in addition to the information required under Section 13-182, an applicant shall provide the following information:

The Director may suspend, revoke or deny a license pursuant to Section 13-184 or Section 13-187, where a Common Ownership Community provides documentation to the Department of a final adjudication that:

When the Director finds that the requirements of the Housing Code have been met, a license certifying such facts shall be issued.

If the Director finds that the requirements of the Housing Code have not been met, a written denial specifying the defects shall be transmitted to the applicant.

If the Director finds that a Use and Occupancy Permit, pursuant to Subtitle 27 of the Zoning Ordnance, has not been issued, a rental license shall be denied and a written denial shall be transmitted to the applicant in writing.

Unless revoked or suspended for cause prior to expiration, each license issued under this Division shall expire not less than one (1) year nor more than two (2) years from the date of initial issuance or renewal as the Director may determine is necessary to develop and maintain an evenly distributed work schedule of the inspection and licensing program. The licensing fee shall be prorated in accordance with the schedule set forth in Section 13-189 of this Code.

The renewal license application shall contain authorization for the licensee to have the option to consent in writing to service of notice of violation, civil citation, and administrative citation of Housing Code violations by email. The renewal license application shall provide for the placement of the optional signature of an applicant for service by email. The renewal license application shall provide that the licensee is obligated to maintain an updated email address. If email consent is provided then, service by certified mail or first-class mail is not required. Failure to update the Department with a new email address is not a basis to challenge service and shall preclude the applicant from any notice-related defenses.

A license issued under this Division is not transferable and terminates upon change of ownership.

The purchaser of a licensed single-family or multifamily rental facility may conduct/operate the property provided an application for a new license is applied for within 30 days following settlement.

A license issued under this Division is not required where a buyer and a seller of a single-family dwelling enter into a Pre-Settlement Occupancy Agreement and/or a Post-Settlement Occupancy Agreement.

If a purchaser fails to apply for a new license as required in Subsection (b) of this Section or Use and Occupancy Permit as required by Subtitle 27, the Zoning Ordinance, a penalty of up to Five Thousand Dollars ($5,000) for each month, or portion thereof, the single-family or multifamily rental facility was operated and/or occupied without a valid license will be assessed.

The term for a new license shall begin on the date the application with appropriate fee was received by the Director.

The term for the initial single-family rental facility license shall begin on the date the license was issued by the Director.

A license once issued or reissued may be suspended or revoked upon a finding by the Director that one (1) or more of the requirements of Subtitle, 4 Subtitle 5, Subtitle 11, Subtitle 13, or Subtitle 27, of this Code have been violated, where the violations constitute a serious threat to the health and safety of the occupants, or upon the unreasonable failure of the licensee to comply with a notice of violation. A license is not required where a buyer and a seller of a single-family dwelling enter into a Pre-Settlement Occupancy Agreement and/or a Post-Settlement Occupancy Agreement.

Reissuance of a license that has been revoked, or denied upon application for renewal, shall be subject to payment of the full amount of the applicable license and inspection fee except that, at the discretion of the Director, the license may be reissued on a six (6) month basis. When an inspection confirms that a property on a six (6) month licensing schedule is being maintained to Code standards it shall then be placed on an annual licensing schedule for a period not to exceed three (3) years. The fee for such six (6) month or annual license shall be the same as normally required for a two year license and shall double, progressively, for any subsequent denial or revocation which may occur prior to expiration of the six (6) month or three (3) year annual licensing term. Such a decision of the Director may be appealed to the Administrative Hearing Unit established by Division 15 of this Subtitle if filed within thirty (30) calendar days.

When a license has been suspended or revoked or an application for a license has been denied, it shall be unlawful for the licensee or any person to let for occupancy or use any dwelling unit then vacant or becoming vacant until a license has been reissued or revalidated.

Upon suspension, revocation, denial, or expiration of a license, a notice, provided by the Department of Permitting, Inspections, and Enforcement, shall be posted and publicly displayed in the rental office or upon the property, as the Director determines, which shall state as follows:

Any issued license which is suspended or revoked shall be returned to the Director.

The notice of suspension, revocation, or denial of a license shall advise the person notified of his right of appeal of such notice. The Administrative Hearing Unit shall hold a hearing upon the appeal and the proceedings shall be conducted in accordance with the procedures outlined in Sections 13-1134 through 13-1151 and Section 13-1153 through 13-1154 of this Code. The Director shall have the initial burden to establish the basis for the determination from which the appeal was taken. The appellant shall have the burden to establish by a preponderance of the evidence that the Director has misconstrued or wrongly interpreted the intent and meaning of this Code. The Administrative Hearing Unit shall determine only whether there was substantial evidence for the Director to take the enforcement action from which the appeal was taken. The Administrative Hearing Unit may not substitute its judgment for that of the Director.

Every decision of the Administrative Hearing Unit shall be given in writing within thirty (30) days of the hearing. A copy of each such decision shall be promptly filed with the Director and a copy shall be sent by U.S. first-class mail, sent electronically, or otherwise delivered to the appellant. An appellant aggrieved by a decision of the Administrative Hearing Unit may seek reconsideration of the matter in accordance with Section 13-1128 of this Code and all provisions of that Section shall apply to the disposition of the application for reconsideration. The decision of the Hearing Administrator on an application for reconsideration shall constitute the final decision of the Administrative Hearing Unit. Any party who, after having exhausted all administrative remedies available, is aggrieved by a final decision of the Administrative Hearing Unit may seek judicial review of that decision in the Circuit Court for Prince George's County, Maryland, in accordance with the Maryland Rules. The filing of a petition for judicial review does not stay an order of the Administrative Hearing Unit, unless a stay is granted by the circuit court.

At the time of application for the initial license or for license renewal for a multifamily rental facility for each dwelling unit, and a single-family rental facility for each dwelling unit shall be collected per the fee prescribed in the Table of Fees. The license shall be for a two (2) year period.

Except as provided for the transfer of license, no refunds of license and inspection fees shall be made to those discontinuing operation or who sell, transfer, give away, or otherwise dispose of a licensed building to another person. In the event it is determined by the Director that an application shall be denied due to legal restrictions that prohibit the issuance of the license, the applicant's tendered fees will be returned.

The schedule of fees shall be subject to review and revision periodically as experience dictates to insure that the fees are equitable and in line with costs of administration of this Division. The fees for single-family rental facilities shall only be amended by Council Resolution.