Council withdraws residential rental registration and inspection ordinance after widespread concerns from realtors and landlords

The Clear Lake City Council on Wednesday withdrew proposed amendments to Section 9‑4 of the Clear Lake Municipal Code governing residential rental registration and inspection after extended public comment and requests from the local Realtors Association and property managers for more time to negotiate changes.

City staff described the draft ordinance as an update to a program originally adopted in 2001 and largely unenforced since about 2008. Staff said the proposed update was intended to address substandard rental housing and described a phased implementation plan for roughly 6,600 suspected rental properties, prioritization for initial inspections and a self‑certification pathway for landlords who meet specified requirements.

Multiple speakers from the Lake County Realtors Association, local brokers and property managers told the council they had outstanding concerns about the draft language, inspection checklists and the proposed fee and certification requirements. Mary Benson, chair of the Realtors’ task force, said stakeholders had been given an interim confidential draft they were asked not to share and that the version on the council agenda differed from expectations. Benson cited specific concerns including the proposal to require every landlord to hold a business license, a one‑year self‑certification window (she said she had expected three years), and checklist items that she said go beyond state law—for example, the draft’s placement of carbon monoxide detectors “outside every bedroom” where state law requires detectors in common areas on each level.

Other speakers — including realtors Timothy Choi and Dave Hughes, longtime landlord Terry Stewart and property manager Katie Evans — warned the ordinance as drafted could raise costs for landlords, reduce rental supply if owners sell rather than comply, and duplicate existing landlord compliance and property‑management practices. Several commenters requested more time to work with staff; some proposed pilot testing.

Council members expressed support for the ordinance’s intent to address substandard housing but agreed the draft requires further work. Council Member Downey said the item should "go back to the drawing table" for additional meetings; Council Member Wilson said task force members should be given another look at the final draft. City Manager Alan Flora said staff would continue discussions with the Realtors’ group. On the record the council reached a consensus to withdraw the item so staff could meet again with stakeholders rather than continuing the matter to a date certain.

Key elements described by staff that will be revisited include phased implementation over approximately three years, prioritization criteria for initial inspections, a self‑certification process after an initial passing inspection, inclusion of vacation rentals and hotels in the scope as currently drafted, and inspection checklists that staff said had been uploaded to the meeting packet. No final fee schedule or effective implementation date was adopted at the meeting.