Budget & Finance committee recommends changes to Bellingham rental registration and inspection fees

The Budget & Finance Committee voted to recommend approval of an ordinance amending Bellingham's rental registration and safety inspection fee schedule after staff described fee clarifications, outreach and enforcement changes.

Julia Burns, the city's rental protection program specialist, told the committee the ordinance would "make billing for rental registration and safety inspections more practical" by aligning late fees for inspections and registrations and slowing how quickly late fees escalate. Burns said staff found the program's current late-fee escalation (every 15 days) was confusing to the public and proposed changing the timing "to match industry standards." She added the proposed updates also clarify which charges are assessed per unit versus per license.

Blake Lyon, director of planning and community development, described enforcement as an implementation priority. He said the city can revoke or withhold licenses for noncompliance rather than immediately pursuing collections, and that revocation has often been a more effective enforcement tool, especially for owners with multiple units. Burns cited the Bellingham Municipal Code as authorizing compliance steps and said the ordinance wording removes direct references to sending accounts to collections, instead referring to the remedies permitted under the code.

Staff also outlined nonfee program work accompanying the ordinance: new inspector-audit processes and standardized compliance notice templates, an online inspection checklist to help private inspectors post results, an interactive map showing property inspection histories and outreach materials for tenants and landlords. Burns said staff increased inspection and missed-appointment fees in 2023 and intend the program to rely primarily on base program fees rather than late fees.

Burns said the code allows the city to inspect up to 100% of units in a property if there is reason to suspect widespread deficiencies, and staff are developing consistent pass/fail standards and reinspection procedures to avoid displacing tenants from unsafe housing.

A committee member asked how the city would handle very delinquent accounts; Burns read from the Bellingham Municipal Code and said unpaid fees can result in a license being deemed out of compliance and potentially revoked, followed by additional compliance steps. The committee took a voice vote and the chair said the committee would forward the ordinance to the full council with a favorable recommendation.

The committee did not provide a roll-call vote tally in the record; the chair said the item will go to the full council for final consideration.