New Merrillville rental fee could generate $200K

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Updated: February 22, 2012 8:04AM

MERRILLVILLE — The Town Council is considering adopting a new rental fee as a means to raise funds to hire additional police and code enforcement officers.

Clerk-treasurer Gene Guernsey said the council is considering a $50 a year fee per unit, which landlords and apartment complexes would be required to pay. He conceded, however, that the fee probably would be passed on to the renters.

While Councilman Tom Goralczyk, D-4th, stressed a proposed ordinance still is in the works and all the details haven’t been ironed out, he said an annual fee would be charged for every rental unit in town, with the exception of nonprofit groups such as AHEPA and In-PACT.

Guernsey estimates the fee would generate about $200,000 a year, enough, he said to hire an additional police officer per shift.

Guernsey said while no fine for noncompliance has been set either, he believes it should be at least $100 per unit.

“If we make it $25 or $50, landlords might decide to take a chance and not pay the fee,” he said.

He was not sure how many apartments, rental houses and portions of houses for rent there are in town. He added there are some houses that may be rented out because of foreclosures or the owner’s inability to sell that the town may not know about.

Guernsey said the ordinance also could include an inspection of a rental unit if the town receives a complaint from the tenant.

“We won’t check every unit — just if there’s a complaint,” he said.

Guernsey said the town basically is looking to subsidize the police department, which has been unable to hire more officers as a result of the tax levy freeze.

“The council’s main concern is safety,” he said.

He said the ordinance would protect both the tenant and the property by ensuring all complaints are looked into by the town.

Goralczyk said the rental ordinance would be similar to one Hammond now has on the books.