HomeMy WebLinkAboutCD RBR Audit Report PPTREPORT ON STATE PERFORMANCE AUDIT CITY RESIDENTIAL RESALE (RBR) PROGRAM APRIL 4, 2016 HISTORY • RBR Program established in 1973 • Report of "residential building record" required prior to sale or property exchange • Purpose of RBR Program • Similar programs throughout Marin (except County) • Not a common service/practice throughout California (10%) CURRENT PROCESS & COST • RBR process- Request filed by seller or agent ✓ File created and records search completed ✓ Inspection completed ✓ Resale report generated and issued; posted on-line -� Buyer/agent returns "buyer's receipt" to City • Fees for RBR service- ✓ Current fees (last updated in 2009); warrant updating ✓ Fees charged by other Marin jurisdictions • RBR Activity V, 600-700 resale reports issued per year CONTENTS OF RESALE REPORT • Common template (Attachment 2) used for all resale reports, which includes: v' Basic property info and zoning ✓City record of issued construction permits ✓Confirmation of land use and improvements observed during inspection ✓ List of minor violations requiring permits ✓ List of major violations requiring follow-up action ✓ Buyer's Receipt and Certification VALUE OF RBR PROGRAM • Provides City with access to residential inventory to address: -� Address basic health and safety issues ✓ Confirm property improvements with permit record ✓ Identify unpermitted work and code violations • In 2014-2015J. of total resale reports issued, 55% result in required follow-up to correct violations and unpermitted work nRDINATION WITH MAR • 2012- MAR published "fair practices" for countrywide implementation • 2013-2014- City/MAR mutually developed "San Rafael RBR Program Policies & Practices" */Waive permits- certain unpermitted work over 25 years old ✓ "Grandfather" improvements that pre -date permit requirement ✓ Waive fees/penalties for unpermitted work inherited by seller ("double jeopardy") ✓ Urge sellers to review personal records to reconcile public permit records STATE AUDITOR COMMISSIONED AUDIT REPORT • August 2015, State Assembly Joint Committee on Legislative Audit voted to approve audit • Audit ordered at request of Assembly Member Marc Levine who reported complaints he received on RBR Program questioning: ✓ Value of the program for seller/buyer ✓ Program hampers property sales ✓ Inaccurate and inconsistent resale reports PERFORMANCE AUDIT REPORT RECOMMENDATIONS • Audit report recommends list of procedural and housekeeping measures to improve program • Audit report does not: ✓Find that RBR Program has no value to the buyer/seller v"' Find that RBR Program hampers property sales v' Find that inspectors are unqualified or inadequately trained PROCEDURAL & HOUSEKEEPING RECOMMENDATIONS 1. City should set up a procedure to monitor all property sales in San Rafael 2. City should develop a process to ensure signed buyer receipts are returned to the City 3. City should develop a formal process for tracking complaints 4. City should develop formal written procedures for follow-upon correcting violations process) 5. City should review prior re -sale reports before conducting inspection (have started) PROCEDURAL & HOUSEKEEPING RECOMMENDATIONS 6. By July '16, City should develop a work plan to address backlog of enforcement of violations; complete by April '17 (started in late 2015) 7. City should establish a process to monitor time goals for completing resale reports 8. City should conduct a formal fee study by Dec `16 and update periodically 9. City should provide continuing education for inspectors and ensure their certificates are current FOLLOW-UP TO RECOMMENDATIONS • Staff finds recommendations to be reasonable • Some of the recommendations are already being implemented • Some of the recommendations increase staff time for process, which will need to be factored into fee study NEXT STEPS • Accept report and provide direction to staff to: —Proceed with implementing audit report recommendations or; —Return to Council with options (e.g., eliminate RBR Program,, change scope of RBR Program; maintain status quo) QUESTIONS